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Friday, November 28, 2025

Philadelphia POWER Act Affects Paid Sick Leave Obligations - Littler Mendelson P.C.

  • Changes took effect immediately upon the mayor’s signature on May 27, 2025
  • While POWER Act primarily focuses on harmonizing retaliation standards across multiple Philadelphia ordinances, secondarily it revises substantive provisions in those laws, including paid sick leave
  • Forthcoming rules and FAQs should clarify how changes impact standards concerning coverage, rate of pay, and notice to employees

On May 27, 2025, the mayor in Philadelphia, Pennsylvania signed into law File # 250065, which took effect immediately. Although the ordinance amended a variety of local employment standards, our focus is their impact on the Promoting Healthy Families and Workplaces Ordinance, the citywide paid sick leave law.

Coverage & CBA-Covered Employees: Since inception, and for more than a decade, the ordinance did not apply to employees covered by a bona fide collective bargaining agreement (CBA). As amended by the new law, however, the exception now applies only to non-probationary employees covered by a bona fide CBA. As a result, employers must provide paid sick leave for CBA-covered probationary employees, and allow them to use that leave in a manner that complies with the ordinance. Notably, the amendments do not address what happens to leave accumulated during their probation status when the employee completes that probationary period.

Tipped Employee Rate of Pay: Under the ordinance, paid sick leave must be paid at the same hourly rate and with the same benefits, including...



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