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Pennsylvania New Tipped Employee Regulations
- Increasing the amount of tips for a “tipped employee” received monthly from $30 to $135 before an employer can reduce an employee’s hourly wage from $7.25 per hour to the as low as $2.83 per hour.
- The 80/20 rule where an employee must spend 80% of their time on duties that directly generate tips for an employer to take a tip credit.
- The regulations allow for Tip Pooling among employees with the exception in most cases managers, supervisors and business owners.
- Employers can no longer deduct credit card and other non-cash payment processing transaction fees from the employee’s tips.
- Employers are now obligated to clarify automatic service charges are not gratuities for tipped employees.