Labor & Employment (Minimum Wage)

HB 1688 updates Pennsylvania's unemployment compensation law to adjust the calculation method for weekly benefit amounts. It sets a minimum weekly benefit of $68 (previously lower) and revises the wage-to-benefit table, linking higher average quarterly wages to increased weekly payments (e.g., wages of $1,688-$1,712 now yield $68 weekly). This directly affects unemployed Pennsylvania workers who qualify for state unemployment benefits, ensuring their payments align with current wage levels. The bill modifies specific sections of the 1936 law governing benefit rates without changing eligibility rules or employer contributions.

SB 853 creates a tax credit for small Pennsylvania businesses (with 50 or fewer full-time equivalent employees) affected by minimum wage increases. It allows employers to claim a credit equal to 50% of the wage increase cost in the first year after a minimum wage hike, and 25% in the second year, against their state tax liability. Unused credit can be carried over for up to three years but cannot be refunded or carried back. Pass-through businesses may also transfer unused credits to owners in proportion to their share of business income.

HB 777 requires Pennsylvania public school districts to pay education support professionals (like aides and clerical staff) a minimum hourly wage of $20 or a living wage based on cost-of-living adjustments, starting in the 2025-2026 school year. School districts must make supplemental payments to cover wage gaps for existing contracts below this rate through 2029-2030, with the Department of Labor setting and annually adjusting the living wage using the Consumer Price Index. The Department of Education will reimburse districts for these supplemental payments, adding the reconciled amount to their annual funding allocation. This applies directly to over 500 school districts and their education support staff, ensuring wage standards align with inflation.

SB 413, the "Statutory Construction of Wage and Hour Laws Act," aligns Pennsylvania's Minimum Wage Act of 1968 with federal Fair Labor Standards Act (FLSA) updates to reduce confusion for employers and workers. It requires Pennsylvania wage laws to be interpreted consistently with federal FLSA provisions, including automatic adjustments to the tipped employee minimum cash wage ($2.83/hour) if federal rates increase. The bill ensures Pennsylvania employers following federal standards won’t accidentally violate state law due to outdated state regulations. It does not change existing laws like the 2008 healthcare overtime ban or override federal standards.

SB 1093 raises Pennsylvania's minimum wage to $9.00 per hour starting January 1, 2026; $10.00 per hour starting January 1, 2027; and $11.00 per hour starting January 1, 2028. It also adds two new exemptions: one for employees working in the personal staff of elected officials or as immediate advisers, and another for minor league baseball players covered by collective bargaining agreements. These changes directly affect most private-sector employers and workers in Pennsylvania, with new wage rates taking effect on the specified dates. The bill updates the 1968 Minimum Wage Act but does not alter existing overtime requirements.

HB 1549 updates Pennsylvania's minimum wage law by establishing new hourly rates for workers in different county classifications, effective starting in 2026. It sets a $15 per hour minimum wage for workers in first-class counties (like Philadelphia) beginning January 1, 2026, with annual cost-of-living adjustments tied to the CPI-U index for the PA/NJ/DE/MD region. For other counties (second, third, fourth, or sixth class based on 2020 census populations), it sets a $12 hourly rate starting in 2026, increasing to $15 by 2028, followed by the same CPI-based annual adjustments. This directly affects all hourly workers in Pennsylvania, with rates varying by county size and population.