Navigating Pennsylvania's SUI Tax in 2025
Employees and employers in Pennsylvania contribute to the state’s unemployment insurance (SUI) fund.
Overview of PTO Laws in Pennsylvania
There is no statewide law in Pennsylvania that requires employers to provide paid time off (PTO). However, there is one exception, which is explained in the next section of this guide. Most businesses provide PTO benefits to attract the best employees, but they set these policies independently. The cities of Philadelphia and Pittsburgh, as well as Allegheny County, have local leave regulations that qualifying businesses must comply with.
Employment in Pennsylvania is still subject to the federal Family and Medical Leave Act (FMLA). This law allows a person to take up to 12 weeks of unpaid leave upon the birth of a qualifying child, to care for a sick loved one, or in other limited circumstances. Employers are also required to allow unpaid leave for jury duty, service in the National Guard or US Reserves, and organ donation.
The one exception where Pennsylvania does require PTO for employees relates to family leave for the birth of a newborn, adoption of a child, or successful placement of a child in foster care. Previously, employees at qualifying businesses were allowed to take up to six weeks of paid leave in these circumstances. As of February 15, 2024, this has been expanded to eight weeks of paid leave. This is the only major change to PTO policies in PA for 2024.
The guidelines to qualify for up to eight weeks of paid PTO are identical to those in the federal FMLA. This rule is more generous than the FMLA, which allows up to twelve weeks of unpaid leave upon the birth or adoption of a child.
Employers are under no obligation to provide PTO in Pennsylvania since there is no statewide leave law. However, employers understand that PTO is a benefit that will allow them to attract and retain good workers. While there is no legal requirement to provide PTO, it's considered a best practice for running a business. Companies can set their policies when it comes to PTO eligibility and accrual.
Note that once you notify employees of a PTO policy in Pennsylvania, your organization is required to adhere to that policy. Failure to do so can result in fines and penalties from the Pennsylvania Department of Labor and Industry.
Also, note that Pennsylvania does not have a "use it or lose it" law when it comes to paid leave. If an employee has accrued unused PTO days when their employment ends, the employer is under no obligation to pay for those unused days. The exception to this is if the employee's contract states that they'll be paid for any unused days.
Other than in Pittsburgh, Philadelphia, and Allegheny County, workers in Pennsylvania are not entitled to PTO under state law. If an employer does offer PTO, they are required to adhere to that policy. Workers should read their employee handbook to ensure that they fully understand the paid leave they are entitled to. If an employee believes their rights are being abused when it comes to PTO, they can contact the Pennsylvania Department of Labor and Industry to file a complaint.
If employees accrue any PTO over time, they should use those days before the end of the calendar year. There is no "use it or lose it" law in Pennsylvania, so they won't want to miss out on any accrued PTO days if their employment ends.
If a company is going to offer paid leave in Pennsylvania, it should clearly outline the policy for all employees. Will there be a rollover policy, so unused days carry over to the next calendar year? Will there be a payout of unused days upon termination? Don't leave any "gray areas" in the policy, because that could open you up to a potential employment lawsuit.
Employees should strive to understand their company's PTO policies if they are offered. This ensures that they do not miss out on any possible paid time off. If you have any questions about your employer's paid leave policy, be sure to bring them to the HR department for clarification.
Pennsylvania does not have a statewide leave law, but a few local areas impose their own regulations. In most of the state, employers are allowed to set their own policies regarding PTO. The one exception, as of February 2024, is that some parents are entitled to up to eight weeks of paid leave upon the birth or adoption of a child or the placement of a foster care child.
Whether you are an employer struggling to implement a PTO policy, Exact Payroll can help you with developing a new policy or reviewing the current one you have in place. Contact us to schedule an appointment with one of our HR experts.
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