PRINTER'S NO. 366 THE GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL No.413 Session of 2025 INTRODUCED BY BAKER, CULVER, J. WARD AND MARTIN, MARCH 10, 2025 REFERRED TO LABOR AND INDUSTRY, MARCH 10, 2025 AN ACT Providing for statutory construction of Pennsylvania wage and hour laws. The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows: Section 1. Short title. This act shall be known and may be cited as the Statutory Construction of Wage and Hour Laws Act. Section 2. Declaration of purpose. The General Assembly finds and declares as follows: (1) Many employers in this Commonwealth are subject to dual coverage under the Fair Labor Standards Act of 1938 (29 U.S.C. Ch. 8) and the act of January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968. (2) The Congress of the United States and the United States Department of Labor have a robust history of amending and revising the Fair Labor Standards Act of 1938 and its implementing regulations and interpretive guidance, including 29 U.S.C. Ch. 9 (relating to portal-to-portal pay) and 29 CFR 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Pt. 541 (relating to defining and delimiting the exemptions for executive, administrative, professional, computer and outside sales employees). (3) The General Assembly seeks to avoid, to the greatest extent possible and consistent with the public policy of the Commonwealth, the burdening of employers and employees with two different sets of Federal and State standards. (4) As a result of the General Assembly and the Department of Labor and Industry of the Commonwealth failing to update in accordance with the amendments and revisions to the Fair Labor Standards Act of 1938 and its implementing regulations and interpretive guidance, unintended discrepancies have arisen between Federal and State law. (5) The discrepancies between Federal and State law have caused confusion for employers and employees and have resulted in instances in which good faith compliance with Federal law has nonetheless been deemed to be in violation of State law. Section 3. Construction of The Minimum Wage Act of 1968. (a) In pari materia with Federal law.--T he act of January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, shall be construed in pari materia with 29 U.S.C. Ch. 9 (relating to portal-to-portal pay) and sections 7 and 13 and the other provisions of the Fair Labor Standards Act of 1938 (29 U.S.C. Ch. 8), including regulations in effect on or after the effective date of this section. (b) Tipped employee wage.-- (1) The minimum cash wage for tipped employees shall be $2.83 per hour. If the minimum cash wage for tipped employees specified in the Fair Labor Standards Act of 1938 is 20250SB0413PN0366 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 increased above the minimum cash wage required under this section, the minimum cash wage required under this section shall be increased by the same amounts and effective the same date as the increases under the Fair Labor Standards Act of 1938. (2) The Secretary of Labor and Industry shall transmit notice to the Legislative Reference Bureau for publication in the next available issue of the Pennsylvania Bulletin of any increase to the minimum cash wage as provided by this subsection. Section 4. Construction of this act. Nothing in this act shall be construed to: (1) modify or repeal the act of October 9, 2008 (P.L.1376, No.102), known as the Prohibition of Excessive Overtime in Health Care Act; or (2) preempt Federal law or to otherwise excuse noncompliance with any Federal law establishing a higher standard than the standard established under the act of January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968. Section 5. Repeals. All acts and parts of acts are repealed insofar as they are inconsistent with this act. Section 6. Abrogation of regulations. All regulations and parts of regulations are abrogated insofar as they are inconsistent with this act. Section 7. Effective date. This act shall take effect in 30 days. 20250SB0413PN0366 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28