HARRISBURG, PA — On Friday, Pennsylvania Department of Labor & Industry (L&I) Secretary Jennifer Berrier announced the department’s submission of final-form regulations to update decades-old rules about how employers pay tipped workers and ensure that salaried employees who work a fluctuating workweek schedule are appropriately compensated for overtime. The department has submitted its proposal to the Independent Regulatory Review Commission (IRRC) in advance of IRRC’s March 21, 2022, meeting.

“The world of work has changed significantly since these regulations first went into effect in 1977, but tipped workers remain a sizeable and critical segment of Pennsylvania’s workforce. They are the only workers whose take-home pay ultimately depends on the generosity of their customers and not the obligation of their employer. This proposal to update the Minimum Wage Act regulations aims to establish robust and modernized guardrails to protect tipped workers in the 21^st century and ensure consistency for employers,” Secretary Berrier said.

The department’s final-form regulation covers five primary areas for tipped workers, including:

• An update to the definition of “tipped employee,” adjusted for inflation since 1977, that increases the amount in tips an employee must receive monthly from $30 to $135 before an employer can reduce an employee’s hourly pay from $7.25 per hour to as low as $2.83 per hour.
• Alignment with a recent federal regulatory update governing employer...

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