Pennsylvania Senate Bill SB803

Pennsylvania 2023-2024 Regular Session

• Introduced: 6/23/23
• Refer: 6/23/23

Caption

Providing for statutory construction of Pennsylvania wage and hour laws.

Impact

If enacted, SB803 is set to amend the interpretation of The Minimum Wage Act of 1968. It specifies that the minimum cash wage for tipped employees in Pennsylvania will be set at $2.83 per hour. Furthermore, any increases in the federal minimum cash wage for tipped employees will automatically trigger corresponding increases in Pennsylvania's minimum cash wage, which seeks to provide workers with more equitable compensation. The legislation aims to eliminate the burden on employers who deal with conflicting state and federal laws, fostering a more consistent labor framework within the state.

Summary

Senate Bill 803, known as the Statutory Construction of Wage and Hour Laws Act, aims to address discrepancies between Pennsylvania's wage and hour laws and federal standards set forth in the Fair Labor Standards Act of 1938. The bill recognizes that many employers in Pennsylvania are subject to both federal and state wage regulations, which can lead to confusion and inconsistencies in compliance. By aligning state laws more closely with updates to federal standards, the bill intends to simplify the regulatory environment for businesses and employees alike, ensuring clarity in wage determination processes.

Sentiment

Overall, the sentiment surrounding SB803 appears to be supportive among legislators and stakeholders who advocate for streamlined regulations. Supporters argue that the bill facilitates better compliance and reduces the risk of inadvertent violations that can arise from conflicting laws. However, there may be concerns about the adequacy of the minimum wage for tipped employees, as the proposed baseline of $2.83 has been criticized by worker advocacy groups as insufficient for livable wages. This dichotomy presents a balanced perspective between business interests and employee welfare.

Contention

Notable points of contention regarding SB803 include the adequacy of the minimum cash wage for tipped employees, which some argue does not reflect the rising costs of living. Opponents may call for a higher starting wage or more responsive wage policies that account for inflation and workers’ needs. While the bill aims to clarify and unify existing laws, discussions surrounding employee welfare and fair compensation standards remain significant, indicating potential pushback from labor advocates and employee-focused organizations.