Pennsylvania Payroll Information
Pennsylvania Wage Payment Requirements
Employers covered by Pennsylvania's wage payment law must pay wages semimonthly within 15 days of the end of a pay period. Overtime wages are payable in the next succeeding pay period.
All employees are covered.
Frequency of Payment
Employers must pay wages semimonthly within 15 days of the end of a pay period. The first payment must be made between the first and 15th day of the month, and the second payment must be made between the 15th and last day of the month.
Employers must pay all wages due on regular paydays.
Overtime wages are payable in the next succeeding pay period, unless written provisions or custom within the trade provides otherwise.
Method of Payment
Employers can pay wages in cash or by check.
Direct Deposit: Direct deposit is allowed if employees request it in writing. The written agreement must include all terms and conditions under which transfers of funds are to be made and the methods employees can use to withdraw permission for direct deposit. Employees must receive a separate written record of each deposit either prior to or at the time of the deposit.
Payroll debit card: There are no state laws or regulations regarding payroll debit cards. According to the Pennsylvania Bureau of Labor Law Compliance, payment by payroll debit card is permitted with employee consent but cannot be mandatory. Charges or fees associated with debit card payment constitute invalid wage deductions prohibited by law.
Employers must at the time of each wage payment give every employee an itemized statement showing:
• hours worked,
• rate of pay,
• gross wages,
• any allowances claimed as part of the minimum wage,
• deductions, and
• net wages.
Electronic pay statements: There are no state laws or regulations regarding electronic pay statements. According to the Pennsylvania Bureau of Labor Law Compliance, electronic pay statements are permitted with employee consent. Employees must be given access to a computer and be able to print statement copies for their personal use.
Employers must notify employees at the time of hiring of the time and place of payment and the rates of pay. Notice may be given by posting the information.
Employers must keep a record for at least three years of the hours worked by each employee and the wages paid to each. The records must be open for inspection by the Department of Labor at any reasonable time.
The Pennsylvania Department of Labor and Industry enforces the law.
Employees can sue to recover unpaid wages and damages. Alternatively, the Department of Labor can pursue a wage claim on behalf of employees. If employers fail to pay wage claims or make satisfactory explanations to the department within 10 days of notice, a penalty of 10 percent of the amount due is added. In wage disputes, the undisputed portion of wages must be timely paid. Acceptance by employees of undisputed wages does not release the claim.
If wages are unpaid 30 days after payday or if shortages exceed 5 percent of the wages due on any two paydays in a calendar quarter, employees are entitled to claim damages equal to the greater of 25 percent of the total wages due or $500.
Employers that violate the wage payment law can be fined up to $300, imprisoned for up to 90 days, or both.
In case of a dispute over wages, employers must pay the undisputed amount on time. Acceptance by the employee is not a release of the employee's wage claim.