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Disclaimer
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
If you do not find the answer to your question through these summaries or
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related links, feel free to contact us with your question. We'll do our best to help
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| Wage Payment Laws for Private Sector Employers |
Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- - Direct Deposit
- Payment upon Separation from Employment
- - Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Deductions from Wages
- - Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements
Payment upon Separation from Employment
An employer must pay en employee who has been discharged or terminated, who has quit
or resigned, or who has been laid off, all wages due no later than the next regular payday
on which the wages would have been paid if employment had continued. An employer
must send the wages to the employee by mail if the employee requests it. Pennsylvania
P.L., 637, No. 329, Sec. 5
Employees who are suspended or resigns due to a labor dispute (strike)
In the event of the suspension of work as the result of an industrial dispute, an employer
must pay all wages due at the time of the suspension no later than the next regular payday
on which the wages would have been paid if the suspension of work had not occurred. An
employer is not required to comply with this time restriction if it is unable to prepare the
payroll due to industrial disputes or for other reasons beyond its control. Pennsylvania P.L.
637, No. 329, Sec. 5
Wages in Dispute
In case of a dispute over wages between an employer and employee, the employer must
give written notice to the employee of the amount of wages conceded to be due and must
timely pay such amount without condition. Acceptance by the employee of any payment
does not constitute a release as to the balance of his or her claim. Pennsylvania P.L. 637,
No. 329, Sec. 6
An employer must pay en employee who has been discharged or terminated, who has quit
or resigned, or who has been laid off, all wages due no later than the next regular payday
on which the wages would have been paid if employment had continued. An employer
must send the wages to the employee by mail if the employee requests it. Pennsylvania
P.L., 637, No. 329, Sec. 5
Employees who are suspended or resigns due to a labor dispute (strike)
In the event of the suspension of work as the result of an industrial dispute, an employer
must pay all wages due at the time of the suspension no later than the next regular payday
on which the wages would have been paid if the suspension of work had not occurred. An
employer is not required to comply with this time restriction if it is unable to prepare the
payroll due to industrial disputes or for other reasons beyond its control. Pennsylvania P.L.
637, No. 329, Sec. 5
Wages in Dispute
In case of a dispute over wages between an employer and employee, the employer must
give written notice to the employee of the amount of wages conceded to be due and must
timely pay such amount without condition. Acceptance by the employee of any payment
does not constitute a release as to the balance of his or her claim. Pennsylvania P.L. 637,
No. 329, Sec. 6
Deductions from Wages
Pennsylvania law does not specifically address whether an employer may deduct or
withhold wages from an employee's pay check to pay for:
- cash shortages
- breakage, damage, or loss of the employer's property
- purchase of required uniforms or clothing
- required tools
- other items necessary for employment
However, such deduction are probably not permissible. Pennsylvania Admin. Code 34: 9.1
details the deductions that are permissible under the law and it specifically requires that
any deduction be for the benefit of the employee. Deductions for cash shortages;
breakage, damage, or loss of the employer's property; purchase of required uniforms or
clothing; tools; etc., are not consider to be deductions for the benefit of the employee, but
instead, deductions for the benefit of the employer.
An employer may deduct or withdraw wages from an employee's pay check for deductions
authorized by and for the convenience of employees:
The following deductions from wages are authorized for the convenience of employees:
(1) Contributions to and recovery of over-payments under employee welfare and pension
plans subject to the Federal Welfare and Pension Plans Disclosure Act (29 U.S.C.A. § 301
et seq.).
(2) Contributions authorized in writing by employees or under a collective bargaining
agreement to employee welfare and pension plans not subject to the Federal Welfare and
Pension Plans Disclosure Act (29 U.S.C.A. § 301 et seq.). These include group insurance
plans, hospitalization insurance, life insurance, provided such insurance policies are
written by companies certified by the Pennsylvania Insurance Department, and group
hospitalization and medical service programs offered by nonprofit hospitalization and
medical service organizations and medical group plans.
(3) Deductions authorized in writing for the recovery of over-payments to employee welfare
and pension plans not subject to the Federal Welfare and Pension Plans Disclosure Act
(29 U.S.C.A. § 301 et seq.).
(4) Deductions authorized in writing by employees or under a collective bargaining
agreement for payments into the following:
savings accounts such as the following:
United Community Fund and similar organizations.
(7) Contributions authorized in writing by the employee for local area development activities.
(8) Deductions provided by law, including but not limited to deductions for Old Age and
Survivors Insurance (Social Security taxes), withholding of Federal or local income or wage
taxes or occupation privilege taxes and deductions based on court orders.
(9) Labor organization dues, assessments and initiation fees, and such other labor
organization charges as are authorized by law.
(10) Deductions for repayment to the employer of bona fide loans provided the employee
authorizes such deductions in writing either at the time the loan is given him or subsequent
to such loan.
(11) Deductions for purchases or replacements by the employee from the employer of
goods, wares, merchandise, services, facilities, rent or similar items provided such
deductions are authorized by the employee in writing or are authorized in a collective
bargaining agreement.
(12) Deductions for purchases by the employee for his convenience of goods, wares,
merchandise, services, facilities, rent or similar items from third parties not owned,
affiliated or controlled directly or indirectly by the employer if the employee authorizes such
deductions in writing.
PA Admin. Code § 9.1
Uniforms, Tools, and Other Equipment Necessary for Employment
Pennsylvania does not have any laws prohibiting an employer from requiring an employee
to purchase a uniform, tools, or other items necessary for employment.
Medical or Physical Exams, including Drug Tests, Required for Employment
An employer may not require any employee or applicant to pay the cost of a medical
examination or the cost of furnishing any medical records required by the employer as a
condition of employment, if the applicant or employee works for the employer for at least
one work week. This prohibition does not apply where medical examination is required by
law as a condition of employment. Pennsylvania P.L. 453, No. 225
Pennsylvania law does not specifically address whether an employer may deduct or
withhold wages from an employee's pay check to pay for:
- cash shortages
- breakage, damage, or loss of the employer's property
- purchase of required uniforms or clothing
- required tools
- other items necessary for employment
However, such deduction are probably not permissible. Pennsylvania Admin. Code 34: 9.1
details the deductions that are permissible under the law and it specifically requires that
any deduction be for the benefit of the employee. Deductions for cash shortages;
breakage, damage, or loss of the employer's property; purchase of required uniforms or
clothing; tools; etc., are not consider to be deductions for the benefit of the employee, but
instead, deductions for the benefit of the employer.
An employer may deduct or withdraw wages from an employee's pay check for deductions
authorized by and for the convenience of employees:
The following deductions from wages are authorized for the convenience of employees:
(1) Contributions to and recovery of over-payments under employee welfare and pension
plans subject to the Federal Welfare and Pension Plans Disclosure Act (29 U.S.C.A. § 301
et seq.).
(2) Contributions authorized in writing by employees or under a collective bargaining
agreement to employee welfare and pension plans not subject to the Federal Welfare and
Pension Plans Disclosure Act (29 U.S.C.A. § 301 et seq.). These include group insurance
plans, hospitalization insurance, life insurance, provided such insurance policies are
written by companies certified by the Pennsylvania Insurance Department, and group
hospitalization and medical service programs offered by nonprofit hospitalization and
medical service organizations and medical group plans.
(3) Deductions authorized in writing for the recovery of over-payments to employee welfare
and pension plans not subject to the Federal Welfare and Pension Plans Disclosure Act
(29 U.S.C.A. § 301 et seq.).
(4) Deductions authorized in writing by employees or under a collective bargaining
agreement for payments into the following:
- (i) Company-operated thrift plans.
(ii) Stock option or stock purchase plans to buy securities of the employing or an
affiliated corporation at market price or less provided such securities are listed on a
stock exchange or are marketable over the counter.
savings accounts such as the following:
- (i) Payments to a credit union.
(ii) Payments to a savings fund society, savings and loan, or building and loan
association.
(iii) Payments to the savings department of banks for Christmas, vacation or other
savings funds.
(iv) Payroll deductions for the purchase of United States Government bonds.
United Community Fund and similar organizations.
(7) Contributions authorized in writing by the employee for local area development activities.
(8) Deductions provided by law, including but not limited to deductions for Old Age and
Survivors Insurance (Social Security taxes), withholding of Federal or local income or wage
taxes or occupation privilege taxes and deductions based on court orders.
(9) Labor organization dues, assessments and initiation fees, and such other labor
organization charges as are authorized by law.
(10) Deductions for repayment to the employer of bona fide loans provided the employee
authorizes such deductions in writing either at the time the loan is given him or subsequent
to such loan.
(11) Deductions for purchases or replacements by the employee from the employer of
goods, wares, merchandise, services, facilities, rent or similar items provided such
deductions are authorized by the employee in writing or are authorized in a collective
bargaining agreement.
(12) Deductions for purchases by the employee for his convenience of goods, wares,
merchandise, services, facilities, rent or similar items from third parties not owned,
affiliated or controlled directly or indirectly by the employer if the employee authorizes such
deductions in writing.
PA Admin. Code § 9.1
Uniforms, Tools, and Other Equipment Necessary for Employment
Pennsylvania does not have any laws prohibiting an employer from requiring an employee
to purchase a uniform, tools, or other items necessary for employment.
Medical or Physical Exams, including Drug Tests, Required for Employment
An employer may not require any employee or applicant to pay the cost of a medical
examination or the cost of furnishing any medical records required by the employer as a
condition of employment, if the applicant or employee works for the employer for at least
one work week. This prohibition does not apply where medical examination is required by
law as a condition of employment. Pennsylvania P.L. 453, No. 225
Notice of Wage Reduction
An employer must inform an employee before changing his or her wage rate. Pennsylvania
P.L. 637, No. 329, Sec. 4 An employer must inform an employee before changing wage
deductions. PA Admin. Code 34: 231.22
An employer must inform an employee before changing his or her wage rate. Pennsylvania
P.L. 637, No. 329, Sec. 4 An employer must inform an employee before changing wage
deductions. PA Admin. Code 34: 231.22
Statement of Wages (Pay Stub)
An employer must furnish employee when wages are paid with a statement listing wages,
hours worked, rates paid, gross wages, allowances, if any, claimed as part of the
minimum wage, deductions and net wages. PA Admin. Code 34: 231.36
An employer must furnish employee when wages are paid with a statement listing wages,
hours worked, rates paid, gross wages, allowances, if any, claimed as part of the
minimum wage, deductions and net wages. PA Admin. Code 34: 231.36
Record Keeping Requirements
An employer must keep for at least three years a true, accurate and legible record for each
employee containing the following information:
such is used in place of name on time, work or payroll records.
- home address including zip code.
- regular hourly rate of pay.
- occupation.
- time and day that the workweek begins. If the employee is part of a work force or
employed in or by an establishment where all workers have a work week beginning at the
same time on the same day, a single notation of the time of the day and beginning day of
the workweek for all workers shall suffice.
- the number of hours worked daily and weekly.
- total daily or weekly straight time wages, that is, the total wages due for hours worked
during the workweek, including all wages due during any overtime worked but exclusive of
overtime excess compensation.
- total overtime excess compensation for the workweek, that is, the excess compensation
for overtime worked, which amount is over and above all straight time earnings or wages
also earned during overtime worked.
- total additions to or deductions from wages paid each pay period. Every employer making
additions to or deductions from wages shall also maintain, in individual employee’s
accounts, a record of the dates, amounts and nature of the items which make up the total
additions and deductions.
- allowances, if any, claimed as part of the minimum wage.
- total wages paid each pay period.
- tate of payment and the pay period covered by payment.
- special certificates for students and learners as set forth in section 4(b) of the act (43 P. S.
§ 333.104(b)).
- for employees working in a bona fide executive, administrative or professional capacity or
in the capacity of outside salesman, the basis on which wages are paid.
PA Admin. Code 34: 231.31; PA Admin. Code 34: 231.32
An employer must keep for at least three years a true, accurate and legible record for each
employee containing the following information:
such is used in place of name on time, work or payroll records.
- home address including zip code.
- regular hourly rate of pay.
- occupation.
- time and day that the workweek begins. If the employee is part of a work force or
employed in or by an establishment where all workers have a work week beginning at the
same time on the same day, a single notation of the time of the day and beginning day of
the workweek for all workers shall suffice.
- the number of hours worked daily and weekly.
- total daily or weekly straight time wages, that is, the total wages due for hours worked
during the workweek, including all wages due during any overtime worked but exclusive of
overtime excess compensation.
- total overtime excess compensation for the workweek, that is, the excess compensation
for overtime worked, which amount is over and above all straight time earnings or wages
also earned during overtime worked.
- total additions to or deductions from wages paid each pay period. Every employer making
additions to or deductions from wages shall also maintain, in individual employee’s
accounts, a record of the dates, amounts and nature of the items which make up the total
additions and deductions.
- allowances, if any, claimed as part of the minimum wage.
- total wages paid each pay period.
- tate of payment and the pay period covered by payment.
- special certificates for students and learners as set forth in section 4(b) of the act (43 P. S.
§ 333.104(b)).
- for employees working in a bona fide executive, administrative or professional capacity or
in the capacity of outside salesman, the basis on which wages are paid.
PA Admin. Code 34: 231.31; PA Admin. Code 34: 231.32
Frequency of Wage Payments
Unless otherwise stipulated in a contract of hiring, an employer must pay employees not
paid by an annual salary at least semi-monthly. If an employer pays wages
semi-monthly,the first payment must be made between the first and fifteenth day of each
month, and the second payment must be made between the fifteenth and the last day of
each month.
Pennsylvania Stat. 43.251; Pennsylvania Stat. 43.253
An employer must pay all wages due to his employees on regular paydays designated in
advance by the employer. Overtime wages may be considered as wages earned and
payable in the next succeeding pay period. All wages earned in any pay period must be
paid:
- within the number of days after the expiration of the pay period as provided in a written
contract of employment or,
- if not specified in an employment contract, within the standard time lapse customary in
the trade or within 15 days from the end of the pay period.
Pennsylvania P.L. 637, No. 329, Sec.3
Unless otherwise stipulated in a contract of hiring, an employer must pay employees not
paid by an annual salary at least semi-monthly. If an employer pays wages
semi-monthly,the first payment must be made between the first and fifteenth day of each
month, and the second payment must be made between the fifteenth and the last day of
each month.
Pennsylvania Stat. 43.251; Pennsylvania Stat. 43.253
An employer must pay all wages due to his employees on regular paydays designated in
advance by the employer. Overtime wages may be considered as wages earned and
payable in the next succeeding pay period. All wages earned in any pay period must be
paid:
- within the number of days after the expiration of the pay period as provided in a written
contract of employment or,
- if not specified in an employment contract, within the standard time lapse customary in
the trade or within 15 days from the end of the pay period.
Pennsylvania P.L. 637, No. 329, Sec.3
Manner of Payments
An employer may pay wages by:
- cash
- check
- direct deposit, so long as the employee consents
Pennsylvania P.L., 637, No. 329, Sec. 3; Pennsylvania Stat. 7.6121
Direct Deposit
An employer may pay an employee by direct deposit if the employee has consented in
writing. The employee's written consent must set forth all terms and conditions under
which the direct deposit is to be made and the terms and conditions as to the method or
methods to be used by which the employee may withdraw the written consent and
terminate the agreement. Also, an employer must provide to each employee being paid by
direct deposit a separate written record of each deposit at or prior to the time thereof.
Pennsylvania Stat. 7.6121; Pennsylvania Stat. 7.6122
An employer may pay wages by:
- cash
- check
- direct deposit, so long as the employee consents
Pennsylvania P.L., 637, No. 329, Sec. 3; Pennsylvania Stat. 7.6121
Direct Deposit
An employer may pay an employee by direct deposit if the employee has consented in
writing. The employee's written consent must set forth all terms and conditions under
which the direct deposit is to be made and the terms and conditions as to the method or
methods to be used by which the employee may withdraw the written consent and
terminate the agreement. Also, an employer must provide to each employee being paid by
direct deposit a separate written record of each deposit at or prior to the time thereof.
Pennsylvania Stat. 7.6121; Pennsylvania Stat. 7.6122
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Notice Requirements
An employer must notify employees at the time of hire of or before any change to the:
- time and place of payment,
- the rate of pay, and
- the amount of any fringe benefits or wage supplements to be paid to the employee, a third
party or a fund for the benefit of the employee
An employer may give the required notification by posting the information and keeping them
posted conspicuously at the employer's place of business.
In where a bona fide collective bargaining agreement cases sets forth wages, amounts of
any fringe benefits, or wage supplements, an employer can comply with the notice
requirement by ensuring copies of that agreement are available to employees.
Pennsylvania P.L. 637, No. 329, Sec. 4
An employer must notify employees at the time of hire of or before any change to the:
- time and place of payment,
- the rate of pay, and
- the amount of any fringe benefits or wage supplements to be paid to the employee, a third
party or a fund for the benefit of the employee
An employer may give the required notification by posting the information and keeping them
posted conspicuously at the employer's place of business.
In where a bona fide collective bargaining agreement cases sets forth wages, amounts of
any fringe benefits, or wage supplements, an employer can comply with the notice
requirement by ensuring copies of that agreement are available to employees.
Pennsylvania P.L. 637, No. 329, Sec. 4
