Tipped Wage Requirements Take Effect

This past weekend, new rules from the PA Department of Labor and Industry took effect, regulating when restaurant employees who normally earn the tipped minimum wage may need to be paid the full minimum wage. Alex Halper, the PA Chamber’s Director of Government Affairs, sat down with Fox43 to discuss the regulations, noting it is imperative the Department of Labor and Industry clearly define compliance obligations for employers.

“We want to make sure employers know what is expected of them so they don’t accidentally find themselves noncompliant with the regulation,” said Halper.

The PA Chamber previously commented on the rules, and a number of  recommendations by the PA Chamber were incorporated into the final regulation, including better aligning state rules with the comparable federal rule to help employers avoid compliance complications, agreeing to conduct outreach sessions before the rules take effect and publishing educational information on its website. The Department further agreed with a PA Chamber suggestion to extend the effective date from 60 to 90 days to provide an additional month to educate the public. The rule also does not require employers to complete any additional forms or reports.

The regulation also includes an unrelated update to the definition of “regular rate” for salaried employees whose overtime pay is determined by the fluctuating workweek method, clarifying that the regular rate is based on a 40-hour workweek to calculate overtime. The PA Chamber will continue to work with the Department as they implement this update.


Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.