HB 1586 creates a refundable tax credit for Pennsylvania taxpayers who earn overtime wages. It allows eligible workers to reduce their state income tax bill by 100% of taxes paid on overtime wages, calculated using employer-provided documentation (as required by 34 Pa. Code § 231.36). The credit applies to tax returns filed for taxable years beginning after December 31, 2025, and will be integrated into the standard PA 40 tax form. This directly affects Pennsylvania workers receiving overtime pay under the Minimum Wage Act of 1968.
HB 160 amends Pennsylvania's prevailing wage law by raising the cost threshold for public construction projects subject to prevailing wage requirements from $25,000 to $257,000 (adjusted annually for inflation). The new threshold uses the Consumer Price Index for urban wage earners in Pennsylvania, New Jersey, Delaware, and Maryland to account for inflation each March. This change exempts smaller public projects (under $257,000) from prevailing wage rules, while larger projects remain covered. The amendment applies to contracts entered into 60 days after the law's effective date.
SB 545 amends Pennsylvania's Minimum Wage Act to exempt minor league baseball players covered by collective bargaining agreements (CBAs) from minimum wage and overtime rules. It adds a specific exemption (Section 5(a)(13)) for players under CBAs detailing their wages and working conditions. The bill also modifies employer recordkeeping requirements (Section 8), exempting these players from needing employers to maintain certain records or allow inspections regarding their pay. This change directly affects minor league baseball teams and players in Pennsylvania under applicable CBAs. The bill takes effect 60 days after enactment.
SB 19 proposes amendments to The Minimum Wage Act of 1968, directly affecting employees and employers across the state. The bill seeks to increase the minimum wage to $15 per hour starting January 1, 2026, with subsequent annual adjustments tied to the cost of living. It also revises rules for tipped employees, requiring their cash wage to be at least 70% of the minimum wage and clarifying that all gratuities are the property of the employee. Employers would be prohibited from deducting credit card processing fees from employee tips and must pay them by the next regular payday.
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 961, the Freedom in Public Contracting Act, prohibits Pennsylvania state and local governments from requiring contractors on public works projects to use union-represented workers, pay union dues, recognize unions, or follow specific apprenticeship or wage/benefit programs. It directly affects contractors bidding on government construction projects (like roads or buildings) by banning discriminatory contract terms based on union status or participation in union programs. The law allows affected contractors to sue a government body in court to stop violations and seek damages or legal fees. It takes effect 60 days after enactment, with exceptions only for federally mandated prevailing wages or state minimum wage laws.
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.
