Pennsylvania's employment law landscape sits at an interesting crossroads. While the state maintains a strong at-will employment tradition and has not raised its minimum wage above the federal floor, it simultaneously offers meaningful anti-discrimination protections, a well-established workers' compensation system, and several city-level ordinances — particularly in Philadelphia and Pittsburgh — that push well beyond state minimums. The key statutes governing Pennsylvania workplaces include the Pennsylvania Human Relations Act (PHRA), the Minimum Wage Act, and the Workers' Compensation Act (Act 338 of 1915).
The Pennsylvania Department of Labor and Industry (DLI) administers wage and hour rules, workers' compensation, and unemployment compensation. Discrimination matters are handled by the Pennsylvania Human Relations Commission (PHRC), while federal claims may be filed with the EEOC Philadelphia District Office.
Pennsylvania's statewide minimum wage remains at $7.25 per hour — the same as the federal minimum under the Fair Labor Standards Act. While legislative proposals to increase the state minimum wage have been introduced repeatedly, none had been enacted as of early 2026. This places Pennsylvania among a shrinking number of states that have not adopted a minimum wage above the federal level. However, Philadelphia has enacted a $15.00 per hour minimum for city employees and contractors, and Pennsylvania's neighboring states — New York, New Jersey, and Delaware — all maintain significantly higher minimum wages.
The tipped minimum wage in Pennsylvania is $2.83 per hour, requiring that tips bring the employee's total hourly compensation to at least $7.25. Employers bear the obligation to make up any shortfall. Overtime rules follow the federal standard: nonexempt employees earn 1.5 times their regular rate for hours worked beyond 40 in a workweek. Pennsylvania does not have daily overtime requirements.
The Wage Payment and Collection Law (43 P.S. § 260.1 et seq.) governs the timing and manner of wage payments. Employers must pay wages at least semi-monthly and provide all earned wages upon separation within the applicable time frame established by the employee's regular pay schedule. Unauthorized deductions from wages are prohibited, and employees may recover liquidated damages equal to 25% of the unpaid amount plus attorney's fees.
The PHRA (43 P.S. § 951 et seq.) is the state's principal anti-discrimination statute. It applies to employers with four or more employees and prohibits employment discrimination based on race, color, religious creed, ancestry, age (40 and over), sex, national origin, non-job-related disability or handicap, the use of a guide or support animal, or familial status. While the PHRA does not explicitly enumerate sexual orientation or gender identity as protected classes at the state level, the Pennsylvania Supreme Court ruled in Doe v. Triangle Diner (2022) that sex-based protections encompass sexual orientation and gender identity discrimination, aligning state law with the U.S. Supreme Court's holding in Bostock v. Clayton County.
The PHRC accepts and investigates complaints of discrimination, conducts mediation, and may hold public hearings. Employees must file a complaint within 180 days of the alleged discriminatory act. Remedies include compensatory damages, back pay, reinstatement, and injunctive relief. Unlike the NJLAD across the border, the PHRA does not provide for punitive damages, and there is no individual liability for supervisors or managers.
The Philadelphia Fair Practices Ordinance extends protections far beyond the PHRA, covering sexual orientation, gender identity, domestic partner status, and genetic information. Philadelphia was among the first cities in the nation to enact a salary history ban (2017), prohibiting employers from inquiring about a candidate's prior compensation during the hiring process. The City of Pittsburgh has adopted similar expanded protections through its local human relations ordinance.
Pennsylvania adheres firmly to the at-will employment doctrine. Under Geary v. U.S. Steel Corp. (1974), the Pennsylvania Supreme Court recognized a narrow public policy exception to at-will employment, permitting wrongful termination claims where the discharge violates a clear mandate of public policy — such as firing an employee for filing a workers' compensation claim or for refusing to violate the law. Implied contract claims based on employee handbooks are generally not recognized in Pennsylvania under the reasoning in Stumpp v. Stroudsburg Municipal Authority, though specific written promises may still create enforceable obligations in some circumstances.
Pennsylvania's Whistleblower Law (43 P.S. § 1421 et seq.) protects public employees who report wrongdoing or waste to an appropriate authority. Private-sector employees must rely on the common law public policy exception or federal protections such as the Sarbanes-Oxley Act for whistleblower claims.
Pennsylvania's workers' compensation program, governed by the Workers' Compensation Act (77 P.S. § 1 et seq.), is a no-fault system requiring virtually all employers to carry coverage. Benefits include payment for all reasonable and necessary medical treatment, wage-loss benefits at approximately two-thirds of the pre-injury average weekly wage (subject to a statutory maximum), specific loss benefits for permanent injuries to specific body parts, and death benefits for surviving dependents.
Injured workers must notify their employer within 120 days of the injury. Claim disputes are resolved through the Workers' Compensation Office of Adjudication. Pennsylvania uses a unique fee schedule for medical providers, and employers may require employees to treat with a physician from a designated panel for the first 90 days of treatment. The Workers' Compensation Appeal Board reviews decisions from workers' compensation judges, with further appeals to the Commonwealth Court.
Pennsylvania's unemployment compensation program is administered by the Department of Labor and Industry. Eligible workers may receive up to 26 weeks of benefits, calculated as approximately 50% of their average weekly wage (plus a dependency allowance) up to a statutory maximum. Claimants must have earned at least $116 in their highest-earning base period quarter, with total base period wages at least 49.5% of the high-quarter earnings or at least 18 times the weekly benefit rate. Unique among states, Pennsylvania funds its unemployment system partly through employee payroll contributions, not solely employer taxes.
Pennsylvania's Child Labor Act (43 P.S. § 40.1 et seq.) establishes strict rules for the employment of minors. Minors under 14 may not be employed in most occupations. Those aged 14-15 face limits on work hours during school weeks (18 hours per week maximum, no more than 3 hours on a school day) and are prohibited from working in hazardous occupations. Employers must obtain an employment certificate (work permit) before employing any minor under 18, and the Bureau of Labor Law Compliance within DLI enforces these requirements.
While Pennsylvania's state legislature has been slow to enact new employment protections compared to neighboring states, the trend at the local level is decidedly employee-friendly. In addition to salary history bans, Philadelphia has implemented a predictive scheduling ordinance for certain industries and strengthened protections for gig workers. Beginning in January 2026, employers with more than 50 full-time employees must also post information about veterans' benefits and services under a new state posting requirement.
The significant gap between Pennsylvania's $7.25 minimum wage and the $15+ minimum in surrounding states continues to drive legislative discussion, and multiple bills proposing staged increases remain pending. Employers operating across the Pennsylvania–New Jersey or Pennsylvania–New York border must be especially vigilant about the differing wage and hour requirements on each side of the state line.
Pennsylvania's statewide minimum wage is $7.25 per hour, matching the federal minimum. The tipped minimum wage is $2.83 per hour. While bills to increase the state minimum have been proposed, none had been enacted as of 2026. Philadelphia requires $15.00 per hour for city employees and contractors.
The Pennsylvania Human Relations Act prohibits employment discrimination based on race, color, religion, ancestry, age (40+), sex, national origin, and disability. The state supreme court has ruled that sex-based protections include sexual orientation and gender identity. Philadelphia and Pittsburgh offer additional local protections covering domestic partner status, genetic information, and salary history.
There is no statewide paid sick leave law in Pennsylvania. However, Philadelphia enacted its own Promoting Healthy Families and Workplaces Ordinance, requiring employers with 10 or more employees to provide up to 40 hours of paid sick leave per year. Pittsburgh passed a similar ordinance, though its enforcement has faced legal challenges.
Pennsylvania requires virtually all employers to carry workers' compensation insurance. Injured workers receive medical treatment and wage-loss benefits at approximately two-thirds of their pre-injury wages. Employees must notify their employer within 120 days and may choose their own physician after the first 90 days if the employer uses a designated provider panel.
Pennsylvania is an at-will employment state, meaning employers may generally terminate employees for any reason. However, terminations that violate the PHRA's anti-discrimination provisions, retaliate for filing a workers' compensation claim, or violate a clear mandate of public policy are unlawful. Written employment contracts or collective bargaining agreements may also impose additional restrictions.