Payment of Wages: Pennsylvania

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• The term wages is specifically defined in the Pennsylvania wage payment law. See Definition of Wages.
• Employers in Pennsylvania may pay wages to employees in cash or by check, direct deposit or payroll card under certain conditions. See Wage Payment Methods.
• In Pennsylvania, employees must be paid at least twice a month, but employers may set more frequent paydays. See Pay Frequency.
• With employees' consent, Pennsylvania law allows employers to make various deductions from employees' pay. See Permitted and Prohibited Wage Deductions.
• Employers must provide each employee with a pay statement for every wage payment including specific information. See Pay Statement Requirements.
• When they are hired, employees must be notified of their pay rate(s), the time and place of wage payments and other pay related information. Notice must also be provided before any change in the information is made. See Employee Notification Requirements.
• Terminated employees must be paid their final wages, including unused vacation time, according to certain rules. Employers are subject to penalties for failure to comply. See Final Pay.
• After an employee dies, the employer must follow certain rules and procedures in order to properly turn over any compensation owed to the deceased employee's survivors. See Deceased Employee Wages.
• Unclaimed wages are considered abandoned property after two years. Employers must remit the unclaimed wages and file an annual report with the state. Penalties are imposed for noncompliance. See Unclaimed Wages.
• Philadelphia has requirements pertaining to the payment of wages. See Local Requirements.