Pennsylvania Wage Payment and Collection Law for Employers and Employees

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In Pennsylvania, employers are required to pay employees their wages on a regular basis, typically bi-weekly or semi-monthly. This is a standard practice to ensure employees receive their hard-earned pay in a timely manner.

Under Pennsylvania law, employers must pay employees their final wages within three days after their employment ends. This includes any accrued but unused vacation time.

To avoid any potential issues, employers should keep accurate records of employee hours worked, wages paid, and any deductions made. This will help prevent disputes and ensure compliance with Pennsylvania wage laws.

Employers who fail to pay wages as required can be held liable for penalties and damages, which can be costly and damaging to their reputation.

Pennsylvania Wage Payment Law

In Pennsylvania, employers must pay employees all wages on regular paydays designated in advance, which must be within 15 days of the end of the payroll period if not otherwise set by contract or industry custom.

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Employers must give written notice to employees 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 their claim.

If an employee is terminated, their employer must pay them all wages due no later than the next regular payday on which the wages would have been paid if employment had continued. The employer must also send the wages to the employee by mail if the employee requests it.

Employers must designate paydays, and if no paydays are designated, the paydays are the first and fifteenth day of each month. They are required to post notices specifying the paydays.

In the event of a dispute over wages, 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.

Here is a summary of the timing requirements for payroll in Pennsylvania:

  • Payroll for wages earned between the 16th of the month to the end of the month must be paid by the 20th of the following month.
  • Payroll for wages earned between the first and 15th of the month must be paid by the 5th day of the following month.

Employers can withhold the final paycheck until the employee returns any property that belongs to the employer.

Payment Frequency and Method

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In Pennsylvania, employers are required to pay employees at least semi-monthly, unless otherwise specified in a contract of hiring. 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.

Employers must pay all wages due to employees on regular paydays designated in advance. Overtime wages can be considered as wages earned and payable in the next succeeding pay period.

Wages earned in any pay period must be paid within a certain timeframe, which can be specified in a written contract of employment or within a standard time lapse customary in the trade. If no timeframe is specified, wages must be paid within 15 days from the end of the pay period.

Employers have some flexibility in how they pay wages, including cash, check, direct deposit, and payroll card.

Here are the options for wage payment:

  • Cash
  • Check
  • Direct deposit
  • Payroll card

Direct deposit is a convenient option for employees, but it requires their written consent. Employers must also provide a separate written record of each deposit to the employee at or prior to the time of the deposit.

Wage Requirements

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Wage Requirements are clear in Pennsylvania law. Employers must give written notice to employees of wages conceded to be due in the event of a dispute. This notice must be timely and without condition.

If an employer fails to provide timely notice, the employee's claim is not released. Acceptance of any payment does not constitute a release of the balance of the claim. PA Statute 43:260.6.

Employers must also notify employees at the time of hire of changes to the time and place of payment, rate of pay, and amount of fringe benefits or wage supplements. This notification can be given by posting the information at the employer's place of business. Employers may also comply with this requirement by making copies of a collective bargaining agreement available to employees. PA Statute 43:260.4.

Wages

Wages are a crucial aspect of an employee's compensation package.

An employer must give written notice to an employee of the amount of wages conceded to be due in case of a dispute.

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Acceptance of a payment from the employer does not constitute a release of the employee's claim for the balance of their wages.

The employer must pay the conceded amount without condition, as stated in PA Statute 43:260.6.

An employer must notify employees of changes to their wages, including the rate of pay and any fringe benefits or wage supplements.

This notice must be given at the time of hire or before the change takes effect.

Employers can comply with this requirement by posting the information at the workplace or by providing copies of a collective bargaining agreement that sets forth wages and benefits.

Deductions from

Deductions from wages can be a bit tricky to understand, but essentially, employers need to keep track of any deductions made from an employee's wages. This includes things like taxes, health insurance, and retirement plan contributions.

To comply with wage requirements, employers must maintain a record of the dates, amounts, and nature of deductions made from each employee's wages. This means keeping track of every deduction, no matter how small.

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Here are some specific details about deductions from wages that employers need to keep in mind:

  • Total additions to or deductions from wages paid each pay period must be recorded.
  • Dates, amounts, and nature of deductions must be documented in individual employee accounts.
  • Every employer making deductions from wages must maintain these records.

By keeping accurate records of deductions, employers can ensure they're meeting wage requirements and providing their employees with transparency and accountability.

Record Keeping and Notice

In Pennsylvania, employers are required to keep accurate records of employee information for at least three years.

These records must include the employee's full name, home address, and occupation, among other details. PA Admin. Code 34: 231.31 requires employers to maintain a true and legible record for each employee.

Employers must also keep track of the number of hours worked daily and weekly, as well as the total daily or weekly straight time wages and total overtime excess compensation. This information should be recorded for each pay period.

Here's a breakdown of the required record-keeping information:

Employers must also notify employees at the time of hire of any changes to the time and place of payment, rate of pay, and fringe benefits or wage supplements. This notification can be given by posting the information at the employer's place of business.

Angelo Douglas

Lead Writer

Angelo Douglas is a seasoned writer with a passion for creating informative and engaging content. With a keen eye for detail and a knack for simplifying complex topics, Angelo has established himself as a trusted voice in the world of finance. Angelo's writing portfolio spans a range of topics, including mutual funds and mutual fund costs and fees.

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