Wage-and-hour ground rules for hotel and hospitality employers in Pennsylvania — minimum wage, tipped-employee rules, overtime, breaks, premium pay, and the hotel-specific obligations that apply on top. Figures below were last reviewed on June 12, 2026; most rates adjust annually.
Verified as of June 12, 2026 — every figure on this page was checked against the official sources listed at the bottom on that date. How we verify →
Minimum wage#
The Pennsylvania minimum wage is $7.25 per hour, effective July 24, 2009. Pennsylvania Minimum Wage Act rate has tracked the federal $7.25 since 2009. Legislative proposals to raise it (e.g., to $15) have repeatedly stalled; none enacted as of June 2026. All six neighboring states are higher.
Preemption Pennsylvania preempts local minimum wage ordinances — cities and counties cannot set their own general wage floors.
Tipped employees & tip pooling#
Pennsylvania allows a tip credit: employers may pay tipped employees a cash wage of $2.83 and claim up to $4.42 per hour in tips toward the minimum wage. Employee must receive more than $135/month in tips (threshold raised from $30 by the 2022 regulations); tips plus cash wage must equal $7.25. 2022 DLI tipped-worker regulations (34 Pa. Code ch. 231, effective Aug. 5, 2022): (1) monthly tip threshold to take the credit raised to $135; (2) the federal 80/20 rule is codified in state regulation — the $2.83 rate is allowed only for weeks where no more than 20% of time is spent on non-tip-producing work; (3) employers may NOT deduct credit card or other payment-processing fees from tips; (4) tip pooling per federal standards with managers/owners excluded.
Tip pooling#
Permitted among employees who customarily receive tips; employers, managers, and supervisors excluded; back-of-house may share only if no tip credit is taken — codified in the 2022 PA regulations consistent with FLSA. (34 Pa. Code ch. 231 (2022 amendments); 29 U.S.C. §203(m)(2)(B))
See the federal baseline rules in our tip credit and tip pooling briefs — the stricter of federal or Pennsylvania law controls.
Overtime#
Overtime is due after 40 hours in a workweek. PMWA overtime is stricter than FLSA in ways that matter to hotels: no highly-compensated-employee shortcut, salaried nonexempt employees are owed 1.5× (not fluctuating-workweek half-time) per Chevalier v. GNC (Pa. 2019), and the regular rate for salaried nonexempt staff is computed on a 40-hour basis (2020 reg amendments).
Run the math — including the tipped-overtime trap — with the tipped overtime calculator.
Meal & rest breaks#
Meal breaks: Not required by Pennsylvania law for adult employees. Federal law requires only that breaks under 20 minutes, if offered, be paid.
Rest breaks: Not required by Pennsylvania law.
Scheduling & premium pay#
- Reporting-time pay: None required by state law.
- Split-shift premium: None.
- Spread of hours: None.
Service charges & gratuities#
Under the 2022 regulations, an employer that imposes a mandatory service charge (e.g., banquet or event fee) must disclose to patrons in writing — on the contract, menu, or bill — that the charge is not a tip or gratuity for employees; automatic gratuities must be distinguished from voluntary tips. Service charges paid to employees count toward the regular rate, not the tip credit. (34 Pa. Code ch. 231 (2022 amendments)) Background: service charges, auto-gratuities & resort fees.
Pay administration#
- Pay frequency: Wage Payment and Collection Law: wages due on regular paydays designated in advance, consistent with the standard time lapse customary in the trade or within 15 days of the end of the pay period (43 P.S. §260.3); semimonthly or biweekly is standard for hotels.
- Wage statements: Pay statements must show hours worked, rates, gross wages, and itemized deductions each pay period (DLI regulations under the WPCL/PMWA). (34 Pa. Code §231.36)
- Exempt salary floor: $684.00/week (federal) — Pennsylvania's higher state EAP thresholds adopted in 2020 were repealed in the 2021 budget; the federal $684/week governs (2024 federal increase vacated). PMWA duties tests still apply and lack some FLSA exemptions.
- Lodging credit: Board and lodging customarily furnished may be credited toward minimum wage per DLI regulations at fair-value amounts with employee acceptance and records.
The PMWA preempts local minimum wages for private employers (2006 amendments), so Philadelphia/Pittsburgh wage rules reach only city workers and contractors. Philadelphia's Fair Workweek Ordinance covers large hospitality, retail, and food-service chains (250+ employees and 30+ locations worldwide) — chain hotels with food service operations in Philadelphia should assess coverage. The 80/20 codification and CC-fee deduction ban are the most-cited PA tip issues for hotel F&B and banquet operations.