Introduction to employment laws in Pennsylvania
Overview
Pennsylvania has a balanced employment landscape with comprehensive regulations. The state’s laws cover minimum wage, workplace safety, and anti-discrimination, among other areas.
Compliance with Pennsylvania employment laws is not just a legal requirement, but also a key aspect of maintaining a positive employer-employee relationship. Here’s a guide to the law for companies looking to hire in the state.
Employing in Pennsylvania: Key employment laws and practices
Standard work hours
The norms for standard work hours in Pennsylvania are influenced by both state and federal labor laws. Full-time employment is generally considered to be between 30 and 40 hours per week. However, the specific definition of full-time can vary based on industry standards or employer policies.
Contract employees or independent contractors have different rules governing their work hours. For these professionals, work hours are typically dictated by the terms set out in their contractual agreement with the employer.
While self-employed professionals like freelancers and gig workers have the freedom to set their schedules, they are still subject to applicable tax laws and licensing requirements in Pennsylvania.
Minimum wage and overtime
Pennsylvania’s minimum wage for private-sector employees stands at $7.25 per hour.
Overtime pay becomes a factor when non-exempt employees work more than 40 hours a week. Under the federal Fair Labor Standards Act, such employees are entitled to 1.5 times their regular pay rate as overtime.
Insurance and benefits
In Pennsylvania, employers are required to provide certain benefits such as unemployment insurance and workers’ compensation insurance. Depending on the size of the company and the nature of its business, additional benefits like health insurance may also be required under federal laws like the Affordable Care Act.
Moreover, many employers voluntarily offer benefits such as retirement plans, paid time off, and professional development opportunities as a strategy to attract and retain quality employees.
Benefit | Description |
Unemployment insurance | Employer contributions range from 1.42%–10.37%, applied on salary up to $10,000 annually |
FICA Social Security | Both employers and employees contribute 6.20% on salary up to $168,000 annually |
FICA Medicare | Both employers and employees contribute 1.45% on salaries |
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Meal and rest periods
Pennsylvania employment laws do not specifically mandate employers to provide meal or break periods outside of those required for workers under 18 years of age, who are entitled to 30 minutes per five hours for workers under 18 years of age.
Businesses commonly provide their employees with breaks, typically during an eight-hour work shift and according to FLSA regulations. Understanding the specifics of meal and break periods in Pennsylvania and as found in the FLSA is crucial for HR compliance.
Anti-discrimination laws
Understanding anti-discrimination laws is a significant part of HR compliance in Pennsylvania. The Pennsylvania Human Relations Act prohibits employment discrimination based on race, color, religious creed, ancestry, age, sex, national origin, non-job-related handicap or disability or the use of a guide or support animal due to blindness, deafness, or physical handicap. It also includes protection against discrimination based on sexual orientation and gender identity in certain counties and municipalities.
Businesses operating in Pennsylvania are expected to ensure equal opportunity in all aspects of employment, including hiring, promotion, termination, compensation, job training, and other terms and conditions of employment. The state’s anti-discrimination policy extends beyond federal guidelines by also covering domestic or sexual violence victims.
Leave policies
Pennsylvania employment laws stipulate various types of leave policies. Vacation leave policy is often at the discretion of employers as there’s no state law mandating paid vacation leave. For sick leave, Pennsylvania follows the Family and Medical Leave Act (FMLA), which allows eligible employees up to 12 weeks of unpaid leave per year for specific family and medical reasons.
Maternity, paternity and parental leave also fall under FMLA provisions. It grants up to 12 weeks of leave for the birth or adoption of a child, or to care for a newly placed child within a year of birth or placement. Bereavement leave is typically at the employer’s discretion, while jury duty leave is unpaid but job-protected.
Employers must also provide military leave in compliance with the Uniformed Services Employment and Reemployment Rights Act (USERRA). This act ensures that persons who serve or have served in the Armed Forces, Reserve, National Guard, or other uniformed services are not disadvantaged in their civilian careers because of their service.
Leave types | Length | Paid/Unpaid | Requirement |
Vacation leave | At the employer’s discretion | Typically paid | Not mandated by state law |
Sick leave | Up to 12 weeks/year | Unpaid | FMLA |
Maternity/Paternity/Parental leave | Up to 12 weeks/year | Unpaid | FMLA |
Bereavement leave | At Employer Discretion | Typically paid | Not mandated by state law |
Jury duty leave | Determined by duration of jury service | Unpaid, but job-protected | Required by state law |
Military leave | Determined by service obligation | Unpaid, but job-protected | USERRA |
Easily onboard employees in Pennsylvania?
Termination laws
Pennsylvania’s termination laws generally follow the “at-will employment” doctrine, meaning that both employers and employees may end the employment relationship at any time without notice or reason. This doesn’t apply if it violates other laws, such as anti-discrimination laws, or if there’s an existing employment agreement specifying otherwise.
While there’s no statutory requirement for employers to provide severance pay upon termination of employment, some may offer it based on company policy or employment contracts.
In case of mass layoffs, under the Worker Adjustment and Retraining Notification Act (WARN), employers are required to provide a 60-day notice to affected employees.
Safety and health
Pennsylvania employers are required to provide a safe and healthy work environment for their employees. Employers must comply with the federal Occupational Safety and Health Act (OSHA), which includes regulations on reporting workplace injuries, maintaining safe equipment, and adhering to specific industry safety standards. Workplace safety standards may vary depending on the nature of the business and potential hazards associated with each industry.
Taxes in Pennsylvania
Both employers and employees in Pennsylvania have tax obligations at the federal and state levels. The employer’s payroll contributions include Unemployment Insurance, FICA Social Security, FICA Medicare, and FUTA tax. On the other hand, employee payroll contributions comprise state unemployment tax, FICA Social Security, FICA Medicare, and an additional tax on earnings over 200,000 USD.
Moreover, the state imposes an income tax on employees at a flat rate of 3.07% for single or joint filers. Federal income tax rates differ based on filing status (single, married filing jointly, head of household) and income brackets.
Tax type | Employer contribution | Employee contribution |
Unemployment insurance (State) | 1.42% – 10.37% (up to $10,000 annual salary) | 0.06% |
FICA Social Security (Federal) | 6.20% (up to $168,000 annual salary) | 6.20% (up to $168,000 annual salary) |
FICA Medicare (Federal) | 1.45% (up to $168,000 annual salary) | 1.45% (up to $168,000 annual salary) |
Additional tax | – | 0.90% (on earnings over $200,000) |
State income tax | – | 3.07% (flat rate) |
Federal income tax | – | Varies by income & filing status |
Managing Pennsylvania employees with an Employer of Record (EOR)
Navigating the details of Pennsylvania employment laws can be a daunting task for any business. With extensive legislation and regulations at both the state and federal levels, ensuring HR compliance can be challenging.
That’s where Multiplier’s global Employer of Record (EOR) solution comes in. We enable businesses to legally and compliantly employ full-time workers in Pennsylvania, without the necessity of setting up local entities.
Through our Global Payroll Platform, we handle the complexities of local taxes, contributions, and withholdings, ensuring employer compliance at all times. Our all-in-one platform allows you to hire, onboard, pay, and manage your employees from a single interface.
Book a demo today and experience how Multiplier can enhance your HR and compliance processes.
FAQs
Full-time employment in Pennsylvania is generally between 30 and 40 hours per week. The exact number can vary depending on the employer’s policy or specific employment contract.
The minimum wage for private sector employees in Pennsylvania is currently $7.25 per hour, although rates may be higher in certain areas, such as Philadelphia. It’s always recommended to monitor any changes, as these rates are periodically reviewed and updated.
Under the federal Fair Labor Standards Act (FLSA), non-exempt employees are entitled to overtime pay of 1.5 times their regular pay rate if they work more than 40 hours in a week. However, certain employees may be exempt depending on their salary and the nature of their duties.
Employees in Pennsylvania have access to various types of leave under the Family and Medical Leave Act (FMLA), including sick leave, maternity leave, paternity leave, and parental leave. Additional rights include military caregiver leave, jury duty leave, voting leave, and military service leave under specific conditions.
In Pennsylvania, most employment relationships are “at-will,” meaning either party can terminate the employment relationship without notice or reason. However, employers need to ensure they’re not violating any anti-discrimination laws or regulations outlined in the federal Worker Adjustment and Retraining Notification Act (WARN) during termination.
