An Act amending the act of January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, further providing for definitions, for minimum wages and for preemption.

SB 852 updates Pennsylvania's Minimum Wage Act to establish new hourly wage rates starting in 2026 ($12/hour) and 2027 ($15/hour), with automatic annual cost-of-living adjustments based on the Consumer Price Index beginning in 2025. It clarifies that tipped workers must retain all tips, cannot be required to surrender tips to employers to meet wage requirements, and must be informed in writing about their minimum wage entitlement. The bill also preempts local ordinances, meaning cities cannot set higher minimum wages than this state law. It directly affects all Pennsylvania employers and workers, particularly those in tipped occupations.