Gov. Wolf has been pushing for workplace improvements such as higher minimum wage in Pennsylvania.
A server tends to customers at Chocolate Avenue Grill, located at 114 W. Chocolate Ave. in Derry Township in May 2021. File photo by Dan Gleiter | [email protected] state regulatory commission Monday gave a green light to change how tipped workers in Pennsylvania are paid, handing Gov. Tom Wolf leverage in his efforts to raise the state’s minimum wage.
“Our embarrassingly low minimum wage has widespread effects that go beyond the unfairly paid workers and their families,” Wolf said in a prepared statement. “When people earn a decent wage, they can contribute to the economic health of their communities and the commonwealth. When they don’t earn enough to pay for bare necessities, they are forced to rely on public benefits.”
The regulation targets other revisions such as how overtime for salaried employees with fluctuating workweek schedules is compensated. Additionally, it clarifies service charges for banquets and events and prevents employers from subtracting credit card transaction fees from workers’ tips. Many Republican lawmakers have opposed Wolf’s effort to raise the minimum wage, arguing it could hurt small businesses and cost some workers their jobs. Some said it would be unfair after many businesses have been battered during the pandemic.
Alignment with a recent federal regulatory update governing employer tip credits to allow employers to take a tip credit under certain conditions, including that the employee spends at least 80 percent of their time on duties that directly generate tips, commonly known as the 80/20 rule.
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