Pennsylvania Minimum Wage and Overtime
The state minimum wage is $7.25. Overtime is time and a half after 40 hours.
The rule
The Pennsylvania Department of Labor and Industry says the minimum wage is $7.25 an hour. A tipped worker's cash wage on the Department's violation list is $2.83 an hour. An employer may take a tip credit only when the worker makes at least $135 in tips in the month. The Department lists, as a violation, deducting credit-card or other payment-processing fees from an employee's tips.
Most employees must be paid overtime at one and one-half times the straight-time rate for hours over 40 in a workweek. Compensatory time off instead of overtime pay is not legal. The regular rate cannot be less than $7.25. For a salary, the Department's overtime page finds the regular rate by dividing the week's earnings by 40.
Act 109 of 2012 lets a hospital, or a place that mainly cares for sick, aged, or mentally ill people, agree with the employee to use the federal 8-and-80 system. Overtime is then due after 8 hours in a workday and after 80 hours in a 14-day period, instead of the usual 40-hour week.
What employers must do
Pay at least $7.25, or $2.83 in cash wages for a tipped worker who meets the $135 monthly tip test, and make up any shortfall to $7.25. Do not take card fees out of tips. Pay time and one-half after 40 hours unless the hospital 8-and-80 agreement applies. Do not substitute comp time for overtime pay. Keep the records the overtime page lists: name, occupation, when the workweek starts, daily and weekly hours, wages, overtime, allowances, pay dates, and deductions.
Effective dates
These are the rates and rules on the Department's pages reviewed November 7, 2026. No January 1, 2027 Pennsylvania minimum wage increase was on those pages.
What this means for BOSS partners and associates
BOSS has associates and tax accounts in Pennsylvania. Tell BOSS the worksite before the assignment starts. Associates should record every hour over 40. Do not promise comp time in place of overtime.
Questions? Contact BOSS Support at support@backofficenow.com.
Sources
This article is general information, not legal advice. Laws change; check with BOSS Support or your own counsel for your situation.