Minimum wage increase coming for Pennsylvania workers who rely on tips
Starting Friday August 5, a wage increase will go into effect for servers who rely on tips.
HARRISBURG, Pennsylvania (WPVI) -- A minimum wage increase is coming soon for some workers in Pennsylvania.
Starting Friday, August 5, a wage increase will go into effect for servers who rely on tips.
The change will increase the amount of money in tips an employee must receive before their hourly rate can be reduced from $7.25 to as low as $2.83.
That tip threshold is going from $30 a month to $135 a month.
According to the Wolf administration, between 93,000 and 160,000 workers are paid a tipped minimum wage below $7.25 an hour.
The rule also updates Pennsylvania regulations to follow federal guidance on who employers can classify as a tipped employee.
Under the new rule, an employee must spend at least 80% of their time on tipped work to be classified as a tipped employee and paid below the $7.25 an hour threshold.
Wolf, a Democrat, has sought unsuccessfully in the Republican-controlled Legislature to raise the state's rock-bottom minimum wage for both tipped and untipped employees.
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The Associated Press contributed to this report.
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