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Pennsylvania House Bill 23 raises minimum wage to $15 by July 2026, eliminates sub-minimum wage for tipped workers, and expands coverage

Original title: An Act amending the act of January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, further providing for definitions and for minimum wages; providing for eligibility and coverage; further providing for exemptions, for duty of employer, for enforcement and rules and regulations and for civil actions; and repealing provisions relating to preemption.

Last action · October 10, 2025: Referred to LABOR AND INDUSTRY, Oct. 10, 2025Sponsors: Chris Rabb and 4 others

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Pennsylvania House Bill 23 raises the state minimum wage to $15 per hour beginning July 1, 2026, with subsequent annual adjustments, abolishes the $2.83 sub-minimum wage for tipped employees, and extends minimum wage protections to agricultural workers, domestic workers, incarcerated workers, and contractors.

Why it matters

The measure directly alters pay scales, gratuity rules, and compliance obligations for employers across multiple industries while establishing civil recovery rights for workers underpaid or unlawfully stripped of tips.

Background
  • Pennsylvania's baseline minimum wage has remained aligned with the federal minimum of $7.25 per hour for over a decade, prompting repeated legislative and executive efforts to raise the wage floor. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Employees

Employees receive a higher wage floor of $15 by 2026, full retention of tips without fee deductions, and expanded legal protections across various previously excluded sectors.

Directly affected

Employers

Employers face higher labor cost requirements, must adjust payroll systems to eliminate tipped sub-minimum wages and tip credits, and must provide itemized statements on every payday.

Directly affected

Tipped employes

Tipped employees receive regular minimum wages without tip credit offsets and full pass-through of credit card gratuities without processing fee deductions.

Directly affected

Agricultural workers

Agricultural workers are brought under standard minimum wage protections following the repeal of previous exemptions.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What will the minimum wage be under the bill and when does it take effect?
The minimum wage rises to $15 per hour starting July 1, 2026. Beginning July 1, 2027, it will increase by $1 annually until reaching a calculated living wage, after which it will be indexed to inflation.
How does the bill change rules regarding employee tips?
The bill abolishes the $2.83 tipped sub-minimum wage, bans employers from keeping any portion of gratuities, requires credit card tips to be paid in full without fee deductions by the next payday, and restricts ing to employees who customarily receive tips.
Which workers are newly covered by minimum wage protections?
Coverage is explicitly extended to domestic workers, agricultural workers, incarcerated workers in work programs, workers with a disability, minors, and marketplace contractors.
What records must employers keep under this measure?
Employers must keep accurate records of hours worked and wages paid for three years, post a summary of the act, allow employee interrogations by the secretary's representatives, and provide an itemized earnings statement on each payday.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Oct 10, 2025HouseCommittee
    Referred to LABOR AND INDUSTRY, Oct. 10, 2025

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

2 patterns noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift99% confidence

Elimination of Tipped Sub-Minimum Wage

The bill completely abolishes the long-standing $2.83 sub-minimum wage for tipped employees and forbids tip credits against standard minimum wages.

policy shift98% confidence

Repeal of Municipal Preemption

Section 5 repeals Section 14.1 of the prior act, removing statewide preemption over local labor ordinances.

Connected Entities

Department of Labor and Industry, Fair Labor Standards Act of 1938, Minimum Wage Advisory Board
OrganizationDepartment of Labor and Industry“Enforces the act and determines living wages and fair values”Map →
otherFair Labor Standards Act of 1938“Federal statute referenced regarding training wages and coverage”Map →
OrganizationMinimum Wage Advisory Board“Assists the secretary in revising regulations”Map →

Sources

Open source document

www.palegis.us

Analysis Score

0–100
  • Significance90
    How much this matters to a regular citizen
  • Controversy85
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz65
    Current news / social attention level

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