Pennsylvania’s Wage Payment and Collection Law (WPCL) is one of the most powerful state wage theft statutes in the country, providing for liquidated damages and attorney fees that can significantly increase what a worker recovers beyond unpaid wages alone.
Minimum Wage in Pennsylvania (2025)
The Pennsylvania minimum wage is $7.25 per hour — equal to the federal minimum. Pennsylvania has not enacted a state minimum above the federal floor. Philadelphia and Pittsburgh have separate local ordinances.
Philadelphia minimum wage. Philadelphia’s minimum wage for city service contractors is $17.20 per hour (2025). For private sector workers generally, the Philadelphia minimum wage mirrors the state rate of $7.25, though advocacy efforts to raise it continue.
Pittsburgh. Pittsburgh passed a $15 minimum wage ordinance but it was struck down by Pennsylvania courts. The state rate of $7.25 applies in Pittsburgh for private employers.
Tipped employees. Pennsylvania allows a tip credit. Tipped employees can be paid as little as $2.83 per hour if tips bring them to at least $7.25. If tips fall short in any workweek, the employer must make up the difference.
Overtime Pay in Pennsylvania
Pennsylvania generally follows the federal FLSA: 1.5 times the regular rate for all hours over 40 in a workweek. There is no daily overtime requirement.
Pennsylvania’s higher salary threshold. Pennsylvania has its own overtime exemption regulations that, as of 2020, set a higher salary threshold than the federal level. Pennsylvania’s threshold for overtime exemptions increased to $875 per week ($45,500 per year) — higher than the federal threshold of $684 per week. To be exempt from overtime in Pennsylvania, a salaried employee must earn at least $875 per week and primarily perform executive, administrative, or professional duties.
Computer professionals. Pennsylvania follows the federal FLSA exemption for computer professionals paid on an hourly basis at $27.63 or more per hour.
The Pennsylvania Wage Payment and Collection Law (WPCL)
The WPCL is the foundation of Pennsylvania wage theft enforcement. Key provisions:
Coverage. The WPCL covers all promised wages — including bonuses, commissions, and vacation pay that has been earned under the employer’s own policy. Unlike some states, Pennsylvania does not mandate vacation payout upon termination unless the employer’s policy promises it.
Liquidated damages. If a Pennsylvania employer fails to pay wages when due without a good faith dispute, the court must award liquidated damages of 25% of the unpaid wages (or $500, whichever is greater), in addition to the wages themselves. This penalty is mandatory, not discretionary.
Attorney fees. Under the WPCL, a prevailing employee is entitled to reasonable attorney fees and court costs. This fee-shifting provision makes WPCL claims economically viable even for smaller amounts.
Treble damages for willful violations. For willful or intentional wage theft, Pennsylvania courts have awarded treble damages (three times the unpaid wages) under common law fraud theories in addition to WPCL remedies.
Final Paycheck Rules in Pennsylvania
| Separation Type | Deadline |
|---|---|
| Any separation (fired, laid off, or resigned) | Next regular payday |
Pennsylvania requires final paychecks to be paid on the next regular payday following the last day of work. There is no requirement for immediate payment on the day of termination.
What must be included. The final paycheck must include all earned wages. Whether accrued vacation must be paid out depends entirely on the employer’s established policy — if the employer’s handbook or contract promises vacation payout, it is enforceable under the WPCL.
Philadelphia Wage Theft Protections
Philadelphia enacted a Wage Theft Ordinance (Bill No. 180979) that creates an administrative complaint process through the Philadelphia Office of Labor:
- Coverage. All employees who work in Philadelphia, regardless of where the employer is based.
- Filing. Complaints filed with the Philadelphia Office of Labor. The city investigates and can hold hearings.
- Remedies. Recovery of unpaid wages plus interest, liquidated damages equal to the unpaid wages (doubling the recovery), and civil penalties up to $2,000 per violation payable to the city.
- Deadline. Complaints must be filed within 3 years of the last wage violation.
Philadelphia workers have this local option in addition to state WPCL and federal FLSA claims.
Real Situations: Common Pennsylvania Wage Disputes
Commission clawback schemes. Pennsylvania has significant financial services and pharmaceutical sales industries where workers are paid primarily on commission. Employers sometimes attempt to “claw back” commissions after the employee has earned and expected them — citing unilateral policy changes buried in employee handbooks. Under the WPCL, commissions earned under the terms communicated at time of hire cannot be retroactively eliminated.
Healthcare off-the-clock rounding. Pennsylvania’s large hospital and home health industry generates many cases involving automatic 30-minute meal break deductions from hourly workers who were actually interrupted during breaks. Employers that apply automatic deductions without tracking whether breaks were actually taken violate the FLSA and WPCL when the deductions result in sub-minimum wage pay.
Construction prevailing wage violations. Pennsylvania’s Prevailing Wage Act requires contractors on public works projects to pay the prevailing wage rate established for each classification. Misclassifying workers into lower-paid classifications or failing to pay the prevailing fringe benefits are common violations on public construction projects.
Common Mistakes Pennsylvania Workers Make
Not knowing about the higher state overtime salary threshold. Many Pennsylvania workers are told they are “exempt” because they earn a salary above the federal threshold of $684 per week. But Pennsylvania’s threshold is $875 per week — meaning salaried workers earning between $684 and $875 per week are entitled to overtime under Pennsylvania law even if they would be exempt under federal law alone.
Missing the WPCL’s mandatory liquidated damages. Workers who settle informally with employers often accept only the unpaid wages without knowing they are also entitled to 25% liquidated damages under the WPCL. Even in a negotiated settlement, the liquidated damages should be part of the calculation.
Not filing in Philadelphia when eligible. Philadelphia workers who file only federal FLSA complaints miss the Philadelphia Wage Theft Ordinance, which doubles the recovery through liquidated damages and creates an administrative path without requiring a lawyer.
How to File a Wage Claim in Pennsylvania
Option 1 — Pennsylvania Department of Labor & Industry. File a complaint with the Bureau of Labor Law Compliance at dli.pa.gov. The bureau investigates WPCL and Minimum Wage Act violations.
Option 2 — Philadelphia Office of Labor (Philadelphia workers only). File at phila.gov/departments/office-of-labor. Faster administrative process with doubled recovery for unpaid wages.
Option 3 — Department of Labor (FLSA). File with the federal Wage and Hour Division for claims that implicate FLSA overtime or minimum wage violations.
Option 4 — Civil lawsuit. Sue in Pennsylvania Court of Common Pleas for WPCL violations. You may recover unpaid wages, 25% liquidated damages, and attorney fees. For smaller amounts, Pennsylvania small claims court handles claims up to $12,000.
Statute of Limitations
| Claim Type | Limitation Period |
|---|---|
| Pennsylvania WPCL | 3 years |
| Pennsylvania Minimum Wage Act | 3 years |
| FLSA (federal, non-willful) | 2 years |
| FLSA (federal, willful) | 3 years |
| Philadelphia Wage Theft Ordinance | 3 years |
| Pennsylvania breach of contract | 4 years |
Related Guides
- Employment Rights Guide — federal wage and overtime rules that apply in Pennsylvania alongside state law
- Pennsylvania Small Claims Court — sue for unpaid wages up to $12,000 without a lawyer
- Pennsylvania Eviction Notice Requirements — tenant protections for Pennsylvania renters
- Pennsylvania Security Deposit Laws — your rights as a Pennsylvania renter
- Pennsylvania Tenant Rights Guide — complete tenant rights guide for Pennsylvania renters
This article is for informational purposes only and does not constitute legal advice. Pennsylvania wage laws change frequently. Always verify current rules at dli.pa.gov or consult a licensed Pennsylvania employment attorney. Last reviewed: March 2026.