Wage Payment Information

• The Wage Payment and Collection Act requires that employers pay their employees at least once every 15 days. An employee's paycheck must include all hours worked during the employer's preceding pay period, including standard work hours and any overtime hours. An employer is required to disclose its wage policies, benefit policies, vacation and holiday pay and any allowable paid sick leave benefits.
  
  

Final Paychecks

• Since Pennsylvania law does not require employers to pay their employees for unworked time, employers do not have to provide paid vacation or sick pay to their employees. However, employers who are required to pay their employees for unworked time pursuant to their written employment policies or written employment contracts must pay their employees for any unused vacation time. Therefore, if an employer's written disclosure stated it would pay employees vacation compensation, the employer must include unused vacation time, as required by its written policy. Absent an agreement, an employer does not have to pay its employees paid vacation.
  
  

Overtime Pay

• Pursuant to federal and state laws, employers must pay their non-exempt employees for overtime work at time and one-half for all hours exceeding 40 hours per week, and pay at least time and one-half over minimum wage. Under Pennsylvania and federal laws, employers do not have to pay their exempt employees overtime compensation. Pennsylvania law excludes salesmen, seamen, automobile mechanics, taxicab drivers, radio or television employees working in small towns, employees working in maple syrup refineries and entertainment industry employees from the overtime requirements.
  
  

Earned Work Hours

• Non-exempt employees have a legal right to receive all of their owed wages by the next pay date following job termination. However, unless required under written agreement or federal law, employers do not have to pay their employees for vacation pay at termination. An employer who fails to include all wages earned in an employee's final paycheck is guilty of violating the Pennsylvania Wage Payment and Collection Act of 1961.
  
  

Considerations

• Since state laws can frequently change, do not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your state.