An Act amending the act of July 14, 1961 (P.L.637, No.329), known as the Wage Payment and Collection Law, further providing for definitions; providing for duty of department to report; further providing for civil remedies and penalties, for liquidated damages and for criminal penalties; providing for employer liability; and establishing the Wage Enforcement Fund.

PRINTER'S NO. 278
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 341
Session of
2025
INTRODUCED BY TARTAGLIONE, KANE, FONTANA, HUGHES, STREET,
SCHWANK, HAYWOOD AND COSTA, FEBRUARY 26, 2025
REFERRED TO LABOR AND INDUSTRY, FEBRUARY 26, 2025
AN ACT
Amending the act of July 14, 1961 (P.L.637, No.329), entitled
"An act relating to the payment of wages or compensation for
labor or services; providing for regular pay days; conferring
powers and duties upon the Department of Labor and Industry,
including powers and duties with respect to the civil
collection of wages; providing civil and criminal penalties
for violations of the act; providing for their collection and
disposition and providing for additional civil damages,"
further providing for definitions; providing for duty of
department to report; further providing for civil remedies
and penalties, for liquidated damages and for criminal
penalties; providing for employer liability; and establishing
the Wage Enforcement Fund.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "employer" in section 2.1 of
the act of July 14, 1961 (P.L.637, No.329), known as the Wage
Payment and Collection Law, is amended and the section is
amended by adding a definition to read:
Section 2.1. Definitions.--The following words and phrases
when used in this act shall have, unless the context clearly
indicates otherwise, the meanings given to them in this section:
* * *
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
"Employer." Includes: [every person, firm, partnership,
association, corporation, receiver or other officer of a court
of this Commonwealth and any agent or officer of any of the
above-mentioned classes employing any person in this
Commonwealth.]
(1) The Commonwealth.
(2) A political subdivision of the Commonwealth.
(3) An authority created by the General Assembly.
(4) An instrumentality or agency of the Commonwealth.
(5) Every person, firm, partnership, association,
corporation, receiver or other officer of a court of this
Commonwealth.
(6) An agent or officer of any of the persons or entities
described in paragraphs (1), (2), (3), (4) and (5) employing any
person in this Commonwealth.
* * *
"High violation industry." An industry that incurs at least
25 violations over a two-year period.
* * *
Section 2. The act is amended by adding a section to read:
Section 8.1. Duty of Department to Report.--(a) The
department shall collect on a quarterly basis the following data
categorized by industry:
(1) number of violations;
(2) amount of fines collected;
(3) nature of violations;
(4) number of individual complaints filed;
(5) number of complaints resolved;
(6) amount of unpaid wages owed;
(7) amount of unpaid wages recovered;
20250SB0341PN0278 - 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
(8) number of pending individual complaints;
(9) number of workplaces investigated from complaints;
(10) number of workplaces investigated proactively;
(11) number of workplaces reinvestigated following
violations; and
(12) number of subsequent violations.
(b) On a semiannual basis, the department shall prepare and
submit a report of the data collected under subsection (a) to
the chairperson of the Labor and Industry Committee of the
Senate and the chairperson of the Labor and Industry Committee
of the House of Representatives, and shall post the report on
the department's publicly accessible Internet website.
(c) The secretary shall investigate high-violation
industries no less than quarterly, train investigators to
recognize basic labor, health and safety violations and engage
in cross-agency referrals to protect workers' rights.
Section 3. Section 9.1(c) of the act is amended and the
section is amended by adding subsections to read:
Section 9.1. Civil Remedies and Penalties.--* * *
(c) The employe or group of employes, labor organization or
party to whom any type of wages is payable may, in the
alternative, inform the secretary of the wage claim against an
employer or former employer, and the secretary shall, unless the
claim appears to be frivolous, immediately notify the employer
or former employer of such claim by certified mail. If the
employer or former employer fails to pay the claim or make
satisfactory explanation to the secretary of his failure to do
so within ten days after receipt of such certified notification,
thereafter, the employer or former employer shall be liable for
a penalty of [ten percent (10%) of that portion of the claim
20250SB0341PN0278 - 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
29
30
found to be justly due.] two thousand dollars ($2,000) per
violation of this act or the regulations of this act or equal to
triple the unpaid wages in damages to the employe, whichever is
greater, and attorney fees. Each week in which an employe is
paid less than the applicable wage under this act and each
employe who is paid less than the prescribed rate shall
constitute a separate violation that shall be subject to a
separate penalty. A good faith dispute or contest as to the
amount of wages due or the good faith assertion of a right of
set-off or counter-claim shall be deemed a satisfactory
explanation for nonpayment of such amount in dispute or claimed
as a set-off or counter-claim. The secretary [shall have a cause
of action against the employer or former employer for recovery
of such penalty and the same] may issue an order and levy the
civil penalty only after affording the accused party the
opportunity for a hearing as provided under 2 Pa.C.S. (relating
to administrative law and procedure). The penalty may be
included in any subsequent action by the secretary on said wage
claim or may be exercised separately after adjustment of such
wage claim without court action. At the request of an employe,
the department shall assign that portion of the money due that
constitutes wages, wage supplements, interest on wages, or wage
supplements, and liquidated damages due the employe, to the
employe and shall file an order in that amount in the name of
the employe with the county clerk of the county where the
employer resides or has a place of business. The filing of the
order shall have the full force and effect of a judgment duly
docketed in the office of the clerk.
* * *
(h) It is unlawful for an employer or the employer's agent,
20250SB0341PN0278 - 4 -
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
or the officer or agent of a corporation, to discharge or in any
other manner discriminate against an employe who:
(1) files or submits a complaint under this act;
(2) cooperates with the secretary or the secretary's
representative, submits evidence, testifies or is about to
testify before the secretary or the secretary's representative
in any investigation or proceeding under or related to this act;
(3) the employer believes may take the actions under this
subsection or subsection (i);
(4) exercises any right under this act or any regulation
implementing its provisions; or
(5) provides assistance or information to another employe
about this act.
(i) A first offense under subsection (h) shall be graded as
a summary offense. A second or subsequent offense under
subsection (h), committed within a five-year period of the prior
offense, shall be graded as a misdemeanor of the third degree
and shall be punishable by a fine of not less than one thousand
dollars ($1,000) nor more than three thousand dollars ($3,000)
or to imprisonment of not less than 10 days nor more than 100
days. Each day of the failure to comply with subsection (h) or
the regulations of subsection (h) and each employe who is
discharged or in any other manner discriminated against shall
constitute a separate offense subject to a separate penalty. An
employer and the employer's agent, or the officer or agent of
any corporation, may also be required to pay the employe an
amount set by the court sufficient to compensate the employe and
deter future violations.
Section 4. Sections 10 and 11.1 of the act are amended to
read:
20250SB0341PN0278 - 5 -
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
Section 10. Liquidated Damages.--Where wages remain unpaid
for thirty days beyond the regularly scheduled payday, or, in
the case where no regularly scheduled payday is applicable, for
sixty days beyond the filing by the employe of a proper claim or
for sixty days beyond the date of the agreement, award or other
act making wages payable, or where shortages in the wage
payments made exceed five percent (5%) of the gross wages
payable on any two regularly scheduled paydays in the same
calendar quarter, and no good faith contest or dispute of any
wage claim including the good faith assertion of a right of set-
off or counter-claim exists accounting for such non-payment, the
employe shall be entitled to claim, in addition, as liquidated
damages an amount equal to [twenty-five percent (25%) of the
total amount of wages due, or five hundred dollars ($500),
whichever is greater.] triple the unpaid wages due or two
thousand dollars ($2,000), whichever is greater, and attorney
fees. Each week in which an employe is paid less than the
applicable wage under this act shall constitute a separate
violation that shall be subject to a separate penalty.
Section 11.1. Criminal Penalties.--(a) The secretary or any
employe, group of employes, labor organization or party to whom
any type of wages is payable may institute prosecutions under
this act.
(b) In addition to any other penalty or punishment otherwise
prescribed by law, any employer who violates any provisions of
this act [shall be guilty of a summary offense and, upon
conviction thereof,] shall be punished by a fine of not [more]
less than three hundred dollars ($300) nor more than one
thousand dollars ($1,000), or by imprisonment up to 90 days, or
by both[, for each offense]. Each day of the failure to comply
20250SB0341PN0278 - 6 -
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
with this act, and each employe against whom the employer or
officer or agent of any corporation violated any other provision
of this act, shall constitute a separate offense that shall be
subject to a separate penalty. A first offense under this
subsection shall be graded as a summary offense. A second or
subsequent offense under this subsection, committed within a
five-year period of the prior offense, shall be graded as a
misdemeanor of the third degree and shall be punishable by a
fine of not less than five hundred dollars ($500) nor more than
one thousand dollars ($1,000). The good faith contest or dispute
by any employer of any wage claim or the good faith assertion of
a right of set-off or counter-claim shall not be considered a
violation of this act: Provided, That the employer has paid all
wages due in excess of the amount in dispute or asserted to be
subject to a right of set-off or counter-claim. [Nonpayment of
wages to, on account of, or for the benefit of each individual
employe shall constitute a separate offense.]
(c) Where such employer is a corporation, the president,
secretary, treasurer or officers exercising corresponding
functions shall each be guilty of such summary offense.
(d) All fines or penalties collected under [this act shall
be paid into the State Treasury through the Department of
Revenue to the credit of the General Fund.] section 9.1 and this
section shall be deposited into the Wage Enforcement Fund
established under section 11.3.
Section 5. The act is amended by adding sections to read:
Section 11.2. Employer Liability.--An employer similar in
operation and ownership to another employer found in violation
of section 9.1(c) or (h) or 11.1(b) shall be deemed the same
employer for the purposes of this section if the employes of the
20250SB0341PN0278 - 7 -
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
similar employer are engaged in substantially the same work in
substantially the same working conditions under substantially
the same supervisors, or if the similar employer has
substantially the same production process, produces
substantially the same products and has the same body of
customers as the other employer found in violation of section
9.1(c) or (h) or 11.1(b). The similar employer shall continue to
be subject to section 9.1(c), (h) and (i) or 11.1(b) and shall
be liable for the acts of the other employer under section
9.1(c), (h) and (i) or 11.1(b), as applicable.
Section 11.3. Wage Enforcement Fund.--(a) The Wage
Enforcement Fund is established in the State Treasury. The money
in the Wage Enforcement Fund shall consist of the fines and
penalties collected under sections 9.1 and 11.1.
(b) Money in the Wage Enforcement Fund is appropriated, upon
approval of the Governor, to the department for periodic
inspections, for investigations of violations and for the
enforcement of this act and the act of January 17, 1968 (P.L.11,
No.5), known as The Minimum Wage Act of 1968, including, but not
limited to, staffing for inspection, investigation and
enforcement under this act and The Minimum Wage Act of 1968.
(c) No money may be expended or obligated from the Wage
Enforcement Fund to any third party for any other purpose than
investigation, training investigators and enforcement under this
act and The Minimum Wage Act of 1968.
(d) Money in the Wage Enforcement Fund shall not lapse at
any time or be transferred to any other fund.
(e) No later than June 30 of each calendar year, the
department shall provide a report to the Governor and the
General Assembly, through the Secretary-Parliamentarian of the
20250SB0341PN0278 - 8 -
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
Senate and the Chief Clerk of the House of Representatives,
regarding the Wage Enforcement Fund. The report shall include:
(1) an accounting for the fines collected and deposited into
the Wage Enforcement Fund;
(2) the expenditures and transfers from the Wage Enforcement
Fund during the prior year;
(3) a description of the purposes for which expenditures
from the Wage Enforcement Fund were made in the prior year; and
(4) a full account of the data collections required of the
department under section 7 of The Minimum Wage Act of 1968.
(f) The department shall post the report required under
subsection (e) on the department's publicly accessible Internet
website no later than July 1 of each calendar year.
Section 6. This act shall take effect in 60 days.
20250SB0341PN0278 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14