P.a to raise tip threshold for tipped minimum wage
HARRISBURG — Tipped employees in Pennsylvania will soon have to make more than four times as much money in tips to be paid below the state’s minimum wage, under a new regulation that adjusts for 45 years of inflation.
Monday's unanimous vote by the five-member Independent Regulatory Review Commission approved a proposal by Gov. Tom Wolf's administration. The new rule could take effect in the coming months and primarily affects restaurant employees.
Currently, employers can pay tipped employees less the state's minimum wage of $7.25 an hour, to as low as $2.83 an hour if they make at least $30 a month in tips.
Under the newly approved rule, that monthly tip threshold will rise to $135 a month to adjust for inflation going back to 1977.