Gov. Wolf Proposes Wage Increase For Tipped Workers

PENNSYLVANIA — Gov. Tom Wolf has proposed an update to the decades-old regulations surrounding the wages received by tipped workers in Pennsylvania.

The proposal would require that employees receive at least $135 monthly in tips before their hourly pay can be reduced from $7.25, the current minimum wage, to $2.83, the minimum wage for tipped employees.

Subscribe to Patch news alerts in your inbox

“The world of work has changed significantly since these regulations first went into effect in 1977, but tipped workers remain a sizeable and critical segment of Pennsylvania’s workforce," Department of Labor & Industry Secretary Jennifer Berrier said in a statement. "They are the only workers whose take-home pay ultimately depends on the generosity of their customers and not the obligation of their employer."

>>Gov. Wolf Signs Executive Order On Wages, Worker Rights

The new proposal, which would modify the state's Minimum Wage Act, would also bring the state in line with a federal regulatory update. Employers can take a tip credit only when the employee spends at least 80 percent of their time on duties that directly generate tips.

Other changes would allow tip pooling among employees under certain circumstances, prevent employers from deducting credit card transaction charges from an employee's tip, and require employers to clarify the difference for customers between "service charges" and tips.

The proposal comes a month after Gov. Wolf signed an executive order aimed at improving working conditions and compensation. Specifically, the order incentivizes businesses that pay employees at least the minimum wage of state government employees, which is currently $13.50 an hour and will rise to $15 by 2024. It also asks the state legislature to pass a bill that would bring the minimum wage for the entire state up to $15 an hour.

During an announcement last week, Gov. Wolf called once again on the state legislature to address the matter.

"American workers are demanding better quality jobs," the governor said. "People want higher pay for their hard work, fair paid time off and safety on the job. I took executive action on all three issues last month, but for too long Republican leaders in Harrisburg have ignored workers in favor of big corporations and forced people to struggle."

The new proposals will be reviewed over the next 30 days by the public and the state's General Assembly, before a final public hearing is held. A review of any comments from the legislature will then take place, a process which is expected to take months, before a vote by the state's Independent Regulatory Review Commission.