PA SB852

Raises Pennsylvania's minimum wage from $7.25 to $12 per hour on January 1, 2026, and to $15 per hour on January 1, 2027, with annual cost-of-living adjustments beginning January 1, 2025 based on the regional Consumer Price Index

Eliminates the tip credit system, requiring employers to pay tipped employees the full minimum wage rather than a lower cash wage supplemented by tips

Requires all gratuities to be retained by tipped employees and prohibits employers from using tips to satisfy minimum wage requirements, while still permitting tip pooling among tipped workers

Authorizes municipalities to enact local ordinances setting minimum wages higher than the state rate, with copies submitted to the Department of Labor and Industry

Takes effect immediately except for the wage definition amendments related to tipped employees, which take effect in six months