Hiring in Pennsylvania requires careful attention to leave and time‑off requirements.
State requirements can interact with federal standards, and in some areas, local rules may layer on additional obligations for employers.
Pennsylvania follows the federal minimum wage standard but adds complexity through local city ordinances and detailed wage payment laws.
Employers must pay attention to differences between federal and local requirements, particularly in cities like Philadelphia and Pittsburgh, which have their own paid sick leave and contractor wage rules.
Whether you hire employees directly or work with an Employer of Record (EOR) like HireArt, understanding Pennsylvania’s wage and hour framework is key to maintaining compliance across multiple jurisdictions.
Employers in Pennsylvania must pay the federal minimum wage or any higher applicable local rate.
The state minimum wage remains $7.25 per hour, aligned with the federal standard under the Fair Labor Standards Act (FLSA).
However, certain cities, like Philadelphia, impose higher wage requirements for city contractors and other covered workers.
Employers must always follow the higher applicable rate between state and local law.
There is no statewide paid sick leave requirement in Pennsylvania.
However, Philadelphia and Pittsburgh have enacted local ordinances that mandate paid sick leave for covered employers. Outside those cities, sick leave policies are governed by company policy. Employers operating across multiple Pennsylvania locations should ensure compliance with both city and federal standards where applicable.
Employers should note that Philadelphia and Pittsburgh maintain local laws that provide more generous protections than state law.
For example, Philadelphia’s “Promoting Healthy Families and Workplaces Ordinance” and Pittsburgh’s Paid Sick Days Act require employers to provide accrued paid sick leave based on hours worked.
When both state and local laws apply, employers must comply with the rule that provides the greatest benefit to the employee.
Pennsylvania does not require meal or rest breaks for adult employees under state law.
Employers should follow internal policies, collective bargaining agreements (CBAs), and FLSA guidance for compensable time. Offering reasonable breaks—even if not mandated—can support employee wellbeing and productivity.
Whether unused vacation or paid time off must be paid out at separation depends on the employer’s written policy or contract.
Pennsylvania generally enforces the terms of an employer’s policy unless accrued vacation is considered earned wages. Employers should clearly document PTO payout procedures to prevent disputes upon termination.
Reimbursement requirements in Pennsylvania are policy-driven but subject to limits on wage deductions.
Employers must ensure that any deductions from employee pay are lawful and properly authorized. Maintaining a written reimbursement and deduction policy helps ensure compliance with Pennsylvania’s Wage Payment and Collection Law.
Employers must issue detailed wage statements and meet specific deadlines for final pay.
Accurate, timely payment practices help prevent violations and maintain employee trust.
Pennsylvania applies federal and state economic-realities tests to determine whether a worker is classified as an employee (W-2) or an independent contractor (1099).
If an employer maintains significant direction or control over how work is performed, the worker must be classified as an employee. Misclassification can lead to penalties, back pay, and tax liabilities under both federal and state law.
HireArt serves as an Employer of Record (EOR) to help companies manage compliance in Pennsylvania’s complex labor environment. Through HireArt, employers can:
By partnering with HireArt, companies can operate confidently in Pennsylvania—reducing compliance risk and simplifying multi-jurisdiction workforce management.
