Pennsylvania's Minimum Wage Update 2026

Pennsylvania minimum wage laws are a hot topic in 2026. Currently, the state's standard minimum wage remains frozen at $7.25 an hour, directly matching the federal rate. The wage hasn't increased in over a decade, making Pennsylvania an outlier in the Mid-Atlantic region. Neighboring states have steadily increased their minimum wages in recent years.

Employers need to understand the differences between standard, tipped, and agricultural rates for minimum wage. Pennsylvania also has strict recordkeeping and compliance requirements. We'll cover all of that here. Plus, while the baseline remains unchanged for now, significant legislative momentum in 2026 threatens to reshape the compliance landscape for employers in the near future.

What is the minimum wage in Pennsylvania for 2026?

When local business owners ask, "What is the minimum wage in Pennsylvania?" the answer remains $7.25 an hour. The rate has been static since July 24, 2009. That's when the PA minimum wage law last moved automatically to match the federal minimum wage increase under the Fair Labor Standards Act (FLSA).

This ongoing freeze has created a big wage disparity between Pennsylvania and its immediate neighbors. As of January 1, 2026:

• New Jersey stands at $15.92 per hour.
• New York ranges from $16.00 to $17.00 per hour, depending on the specific region.
• Delaware and Maryland have both reached a baseline of $15.00 an hour.
• Ohio sits higher at $11.00 an hour.

With Pennsylvania's minimum wage still sitting at $7.25, many regional employers find they must offer higher competitive wages simply to attract and retain local talent.

Standard Hourly Rates & Overtime Rules

The standard rate of $7.25 an hour applies across most of Pennsylvania's workforce. It covers full-time, part-time, temporary, and seasonal employees under the PA minimum wage law. The law does not establish separate statutory minimums based on employee type or business size for standard, non-tipped roles.

Overtime Calculations

When it comes to overtime, the Pennsylvania Minimum Wage Act and the FLSA require that non-exempt employees receive 1.5 times their regular rate of pay for all hours worked in excess of 40 hours within a designated workweek.

However, Pennsylvania employers should be cautious when calculating overtime for salaried, non-exempt workers. While federal rules allow for a "fluctuating workweek" calculation that can dilute the hourly rate as hours increase, Pennsylvania strictly prohibits this practice. Under state enforcement, a salaried non-exempt employee's regular rate must always be determined by dividing their base weekly pay by exactly 40 hours, ensuring a higher fixed overtime multiplier.

Agricultural Rates

Agricultural workers are largely exempt from standard minimum wage and overtime rules. This generally includes:

• Traditional farming and field work
• Horticultural, orchard, and garden cultivation
• Direct handling, drying, and packing of raw farm products for market

Agricultural employers must avoid the trap of assuming total exemption. The FLSA maintains its own complex criteria for agricultural exemptions. If an operation doesn't meet the federal exemption guidelines, an employer may still be legally bound to pay the federal minimum wage, even if they're exempt under state guidelines.

What was the Pennsylvania minimum wage in 2025?

The Pennsylvania minimum wage 2025 was the same as it is now: $7.25 an hour. No statutory changes or state-level adjustments have taken place since 2009.

Pennsylvania's Tipped Minimum Wage

Pennsylvania's tipped minimum wage, which an employer must pay directly to an employee, is $2.83 per hour.

Employers may claim a maximum tip credit of $4.42 per hour against their minimum wage obligations. The combination of the direct cash wage ($2.83) and the employee's actual tips must equal or exceed the minimum wage of $7.25 for every hour worked during a payroll period.

If an employee's tips fail to bridge that gap, the employer is legally obligated to pay the difference. Pennsylvania's tipped wage floor of $2.83 is notably higher than the federal requirement of $2.13 per hour.

Who qualifies as a tipped employee?

Under current regulations, someone is a "tipped employee" only if they customarily and regularly receive more than $135 per month in tips. Business owners should check their older documentation — some outdated state and federal guidelines still reference an obsolete $30/month threshold that was officially replaced in Pennsylvania.

The 80/20 Compliance Rule

To legally use the tip credit, employers must strictly monitor the 80/20 Rule:

• Tip-Generating Duties: At least 80% of an employee's hours must be spent on direct customer service tasks that generate tips.
• Directly Supporting Duties: An employee can spend no more than 20% of their weekly hours on non-tipped support tasks.
• The Penalty: If an employee spends more than 20% of their week on support tasks, the employer cannot claim the tip credit for the excess time and must pay the full $7.25 rate for those hours.

Pennsylvania law dictates that tips are the absolute property of the employee receiving them. Employers are prohibited from deducting credit card processing fees or transaction costs from an employee's tips. The full tip amount authorized by a customer on a credit card slip must be paid directly to the worker.

Pennsylvania Employer Compliance Requirements

To stay fully compliant with Pennsylvania minimum wage laws, your business must implement these operational guardrails:

• Meticulous Recordkeeping: Employers must maintain accurate records of daily and weekly hours worked, wage rates, and monthly reported tips. Pennsylvania requires a minimum of three years for record retention.
• Mandatory Workplace Postings: All businesses must display up-to-date PA labor law posters detailing current minimum wage rates and employee rights in an easily accessible staff area.
• Strict Exemption Classifications: Employers must carefully vet workers before classifying them as exempt from minimum wage or overtime. Standard exemptions are restricted to executive, administrative, professional, outside sales, domestic service, and certified student/learner subminimum rules.

For customized help with these complex requirements, Exact Payroll's HR Solutions can help safeguard your compliance.

Is Pennsylvania's Minimum Wage Law Changing in 2026?

While the rate is currently $7.25 an hour, change is likely on the horizon. Following its passage in the Pennsylvania House in March 2026, House Bill 2189 proposes a phased increase for a new PA minimum wage law ($11 in 2027, $13 in 2028, $15 in 2029). Governor Josh Shapiro's 2026-27 budget proposal called for a $15 per hour minimum wage by January 1, 2027, supported by Senate Bill 19.

As of mid-2026, none of these proposals have passed the Senate, meaning Pennsylvania's minimum wage remains tied to the federal rate for the immediate future. Employers shouldn't adjust payroll based on any of these figures yet, but it's worth keeping an eye on Senate activity, since a new PA minimum wage law could move quickly once it has the votes to pass.

FAQs: Pennsylvania Minimum Wage Laws

How do I file a minimum wage complaint in Pennsylvania?

Employees who believe they haven't been paid the required minimum wage can file a complaint with the Pennsylvania Department of Labor & Industry using its Minimum Wage and Overtime Complaint Form, available on the department's website.

How often does Pennsylvania increase its minimum wage?

Rarely. Pennsylvania has only adjusted its minimum wage twice through standalone state action, a phased increase to $7.15/hour completed in 2007, and a move to $7.25/hour in 2009 to align with the federal minimum. Unlike some neighboring states, Pennsylvania doesn't have an automatic annual adjustment built into its law.

When is the next minimum wage increase in Pennsylvania?

There's no confirmed date. While House Bill 2189 and other proposals are under consideration, none has passed the Senate or been signed into law. Any increase would depend on further legislative action, there's currently no scheduled or guaranteed increase.

Who is exempt from minimum wage in Pennsylvania?

Several categories of workers are exempt, including certain agricultural employees, domestic service workers in private homes, newspaper carriers under 18, executive/administrative/professional employees meeting specific salary and duties tests, outside sales employees, and workers under approved subminimum wage certificates (such as students, learners, or workers with disabilities).