Employment Preemption in Philadelphia, PA: What Residents Actually Need to Know

If you live in Philadelphia or are thinking about moving there, employment preemption are one of those things you probably won't think about until they affect you directly. Philadelphia has 2 specific rules on the books covering different aspects of employment preemption, and some of them might surprise you.

Minimum Wage Preemption

43 P.S. section 333.114a preempts Pennsylvania localities from setting a minimum wage above the state floor of 7.25 dollars. Philadelphia can require higher wages only for city employees and contractors under the 21-Twenty-One Living Wage and Subcontractor Acts.

Key details: State preemption: 43 P.S. 333.114a. PA minimum: $7.25 per hour. Philly contractor wage: $16-plus indexed. City employee wage: Title 20-200.

Wage-theft below the state minimum is recoverable as unpaid wages plus liquidated damages under 43 P.S. 260.10; city-contractor underpayment is enforced by Philadelphia Office of Labor Standards with debarment up to three years.

If you are coming from a city with tighter rules, you will find Philadelphia gives residents more flexibility on minimum wage preemption.

Paid Leave Preemption

Philadelphia Code Chapter 9-4100, the 2015 Promoting Healthy Families and Workplaces Ordinance, requires employers with 10 or more employees to provide up to 40 hours of paid sick leave annually. Smaller employers must offer the same hours unpaid; Pennsylvania does not preempt the rule.

Key details: Statute: Philadelphia Code 9-4100. Annual cap: 40 hours per year. Paid threshold: 10 or more employees. Enforcer: Office of Labor.

Each violation may incur penalties up to 2,000 dollars under section 9-4116, plus reinstatement, back wages, and three times the value of unpaid sick leave; willful retaliation can lead to license suspension by L&I.

The Bottom Line

Philadelphia's employment preemption rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Philadelphia is broadly strict or permissive.

These rules come from Philadelphia's publicly available municipal code. For complete penalty schedules, exemption details, and answers to common questions, see the individual ordinance pages throughout this guide.