NBC10 is one of more than 20 news organizations collaboratively reporting on solutions to poverty and Philadelphia’s push towards economic mobility.
A new series of rules aiming to protect tipped workers is now in effect across Pennsylvania.
One update to the Pennsylvania Minimum Wage Act stipulates that employees must now make at least $135 a month in tips before bosses are allowed to drop their hourly pay from $7.25 an hour to as low as $2.83 an hour. Before, employees needed to make only $30 in monthly tips before their bosses could drop their hourly pay.
Additionally, tip pooling will be allowed among employees but will in most cases exclude managers, supervisors and business owners.
Employers will also be prevented from deducting credit card and other non-cash payment fees from workers’ tips, and they must clarify to customers that automatic service charges are not tips for workers.
Workers must be allowed to spend at least 80% on their time doing work that generates tips.
Breaking news and the stories that matter to your neighborhood.
“These updated regulations not only seek to keep tips in the pockets of workers who rightfully earned them, but to also ensure employers are playing by the same, fair rules,” Pennsylvania Department of Labor and Industry Secretary Jennifer Berrie said in a written statement.