Pennsylvania Tipped Wage & 80/20 Tip Credit Calculator
Verify Pennsylvania’s $2.83 cash wage floor, maximum $4.42 tip credit, 80/20 supporting work restrictions, and $135 monthly threshold under updated Department of Labor & Industry regulations.
Pennsylvania Tipped Wage & 80/20 Tip Credit Calculator
Enforce Pennsylvania’s $2.83 cash wage floor, 80/20 supporting work restrictions, and $135 monthly threshold under 34 Pa. Code § 231.101a and § 231.111.
Pennsylvania Tipped Worker Legal Protections
Direct Cash Wage Floor & Make-Up Pay
Under 34 Pa. Code § 231.101a, Pennsylvania employers must pay at least $2.83/hr in direct cash wages out of pocket. Even if an employee earns hundreds of dollars in tips, the employer cannot pay less than $2.83. Furthermore, if direct cash plus tips averages less than $7.25/hr across all hours, the employer must pay make-up pay to satisfy the statutory minimum.
The 80/20 Rule for Directly Supporting Work
In 2022, Pennsylvania finalized comprehensive regulations (52 Pa.B. 6271) restricting tip credits. Work is divided into three distinct categories: tip-producing work, directly supporting work, and unrelated work. If directly supporting tasks exceed 20% of the weekly hours worked, all excess hours must be paid at the full $7.25 minimum wage. Unrelated tasks must never be credited against tips.