Philadelphia is the economic anchor of the Delaware Valley region and one of the largest metropolitan economies on the East Coast. The city's diverse economic base spans healthcare and life sciences, higher education, financial services, energy, manufacturing, government, and a thriving food and hospitality industry. As Pennsylvania's largest city, Philadelphia operates under a distinctive regulatory framework that layers city-specific employment ordinances on top of Pennsylvania state law and federal requirements. HR professionals in Philadelphia must navigate this multi-layered landscape with precision, because the city's own laws frequently provide greater employee protections than state or federal standards — and the consequences of non-compliance include substantial fines and litigation exposure.
Federal employment statutes set the compliance floor for every Philadelphia employer. Our training programs provide the in-depth knowledge you need to build a strong compliance foundation:
FMLA | ADA | PWFA | COBRA | Workers' Comp | Cafeteria Plans | Retirement Plans | Payroll | Workplace and Internal Investigations
Pennsylvania's labor laws create a moderate regulatory environment at the state level, but Philadelphia's own municipal ordinances add significant additional obligations. Understanding both layers is essential for HR professionals operating in the city.
Pennsylvania's state minimum wage remains at $7.25 per hour, matching the federal minimum wage. While there have been ongoing legislative efforts to raise the state minimum, it has not been increased since 2009. However, the City of Philadelphia has used its authority to set its own minimum wage for certain categories of workers. Philadelphia's minimum wage for city employees and employees of city contractors is $15.00 per hour or higher under various executive orders and contract requirements. Private-sector employers not under city contract must pay the state minimum, though the competitive Philadelphia labor market effectively requires higher wages for most positions.
The PHRA prohibits employment discrimination by employers with four or more employees — a lower threshold than federal Title VII's 15-employee requirement. The law covers discrimination based on race, color, religion, ancestry, age (40 and over), sex, national origin, disability, and the use of a guide or support animal. The Pennsylvania Human Relations Commission (PHRC) has a worksharing agreement with the EEOC, meaning charges filed with one agency are typically cross-filed with the other. Philadelphia's own Fair Practices Ordinance extends protections even further, covering additional categories not listed under state or federal law.
Pennsylvania requires virtually all employers to carry workers' compensation insurance — there is no minimum employee threshold. Benefits include payment of reasonable and necessary medical expenses, wage-loss benefits at 66⅔% of the employee's pre-injury average weekly wage (subject to a maximum weekly rate that is adjusted annually — $1,325.00 per week as of January 1, 2024), and specific loss benefits for permanent injuries. The statute of limitations for filing a claim is three years from the date of injury. Pennsylvania also has a unique impairment rating evaluation (IRE) process that can affect the duration of total disability benefits after 104 weeks. HR professionals in Philadelphia's construction, healthcare, and manufacturing sectors need deep familiarity with these provisions to manage claims effectively.
This law governs the timing and method of wage payments. Employers must pay employees at least semi-monthly (or on regular paydays designated in advance). Upon separation, you must pay all earned wages by the next regular payday. Unauthorized deductions from wages are prohibited, and employees can recover unpaid wages plus 25% liquidated damages and attorney's fees. Given Philadelphia's large service-sector workforce, where wage disputes are common, ensuring strict compliance with pay practices is a high priority.
Effective January 1, 2020, Philadelphia's Fair Workweek Employment Standards Ordinance applies to retail, hospitality, and food service establishments with 250 or more employees worldwide and 30 or more locations worldwide. Covered employers must provide employees with a written good-faith estimate of their schedule at the time of hire and post work schedules at least 14 days in advance. Changes made after posting require predictability pay — one hour of pay at the employee's regular rate for schedule changes and the full scheduled pay for shifts cancelled with less than 24 hours' notice. Employers must also offer additional hours to current employees before hiring new workers. Violations carry penalties of $2,000 per affected employee per week for repeat offenders.
Philadelphia requires employers with 10 or more employees to provide paid sick leave, while employers with fewer than 10 employees must provide unpaid sick leave. Employees accrue one hour of sick leave for every 40 hours worked, up to a maximum of 40 hours per year. The leave can be used for the employee's own illness, to care for a family member, or for absences related to domestic violence, sexual assault, or stalking. Employers cannot require medical documentation for absences of fewer than three consecutive days. This ordinance operates independently of any voluntary PTO policies you may offer, and you must track accrual and usage separately.
Philadelphia's Wage Equity Ordinance prohibits employers from asking job applicants about their salary history at any stage of the hiring process, including on applications, during interviews, and through third-party background checks. Employers also cannot rely on salary history to determine compensation unless the applicant voluntarily discloses the information. Violations can result in fines up to $2,000 per offense plus damages. This law aims to reduce gender and racial pay gaps and requires HR teams and recruiters to focus compensation decisions on the role's market value, the candidate's qualifications, and internal pay equity.
Philadelphia's Fair Criminal Records Screening Standards ordinance restricts when and how employers can inquire about criminal history. Employers with one or more employees may not ask about criminal convictions on a job application. Once a conditional offer is extended, employers may inquire about convictions but must conduct an individualized assessment considering factors such as the nature of the offense, the time elapsed, and the relevance to the position. For positions involving work with children or vulnerable adults, additional screening may be required under state law, but the city's process must still be followed.
Philadelphia is one of a handful of cities in the U.S. where municipal employment law is significantly more expansive than state law. The city's Fair Workweek Ordinance, Paid Sick Leave Ordinance, Salary History Ban, and Ban-the-Box requirements each impose obligations that do not exist at the Pennsylvania state level. You must maintain policies, handbooks, and training programs that address all three regulatory layers and keep pace with annual updates. A compliance gap at any level can result in fines, litigation, and reputational damage in a market where employee awareness of their rights is high.
Philadelphia's economy is anchored by its healthcare systems (Penn Medicine, Jefferson Health, Temple Health) and its universities (University of Pennsylvania, Drexel, Temple, Villanova). These "eds and meds" employers manage large, complex workforces that include faculty, researchers, clinicians, support staff, and students in employment roles. HR challenges include navigating academic tenure systems alongside employment-at-will doctrines, managing credentialing and licensing requirements, handling complex leave interactions for healthcare workers, and maintaining compliance with Level 2 background screening under Pennsylvania's Child Protective Services Law for employees who work with minors.
Philadelphia's restaurant, retail, and hospitality sectors employ a large number of hourly and tipped workers. Wage theft — including off-the-clock work, misapplied tip credits, missed meal breaks, and misclassification of employees as independent contractors — is a persistent concern. Philadelphia's Office of Worker Protections actively investigates complaints and enforces the city's wage-related ordinances. Proactive measures, including regular payroll audits, supervisor training on time-keeping practices, and clear written policies on meal and rest breaks, are essential for managing risk.
Philadelphia imposes a local wage tax — currently 3.75% for residents and 3.44% for non-residents who work in the city (rates for tax year 2024). This is one of the highest local wage taxes in the nation and applies in addition to federal, state, and local income taxes. HR and payroll teams must ensure correct withholding for employees who live in Philadelphia, work in Philadelphia, or both. For employers with employees splitting time between Philadelphia and suburban offices in Montgomery, Chester, Bucks, or Delaware Counties, apportioning the wage tax correctly requires careful tracking of work location by day.
HRTrainingCenter.com offers a full range of training formats for Philadelphia's HR professionals. Whether you attend a seminar in Center City, join a webinar from your office in University City, or complete an online certification from anywhere in the Delaware Valley, you will receive expert instruction that addresses the specific challenges of managing HR in Philadelphia.
Our in-person seminars in the Philadelphia metro area deliver intensive, hands-on training from employment law experts and seasoned HR practitioners. Popular programs include:
Check our Seminar Calendar for upcoming dates in the Philadelphia area.
Participate in real-time, expert-led webinars without leaving your office. Our webinars deliver the same rigorous content and interactive Q&A as in-person seminars, and you earn the same professional development credits. View the Webinar Calendar for upcoming sessions.
Earn professional certifications at your own pace through our online programs:
Browse all online training programs to find the right course for your professional development.
If you are a retail, hospitality, or food service employer with 250 or more employees worldwide and 30 or more locations, you must provide covered employees with a good-faith estimate of their expected schedule at the time of hire, post work schedules at least 14 days in advance, and pay predictability pay when you change schedules after posting. Schedule changes made between 14 days and 24 hours before a shift require one hour of additional pay at the employee's regular rate. Changes or cancellations made with less than 24 hours' notice require payment of the full scheduled shift. You must also offer available hours to existing employees before hiring new part-time or temporary staff. Violations can result in penalties of up to $2,000 per affected employee per week for repeat offenses.
No. Under Philadelphia's Wage Equity Ordinance, you may not ask applicants about their current or prior salary, benefits, or other compensation at any stage of the hiring process. This prohibition applies to direct questions, written application forms, and inquiries made through recruiters or background check providers. If an applicant voluntarily discloses salary history without prompting, you may consider that information, but you cannot use it as the sole basis for determining compensation. To comply, train all hiring managers and recruiters on the prohibition, remove salary history fields from applications, and base compensation offers on the position's market rate, internal equity, and the candidate's skills and experience.
Under the Promoting Healthy Families and Workplaces Ordinance, employees of employers with 10 or more employees accrue one hour of paid sick leave for every 40 hours worked, up to a maximum of 40 hours per year. Employees of smaller employers accrue unpaid sick leave at the same rate. Accrual begins on the employee's first day of work, and employees may begin using accrued leave after their 90th day of employment. Unused sick leave carries over to the following year, but employers may cap total accrual and usage at 40 hours per year. Sick leave can be used for the employee's own physical or mental illness, to care for a family member, or for absences related to domestic violence, sexual assault, or stalking.
Philadelphia's wage tax applies to all wages earned by Philadelphia residents regardless of where they work and to all wages earned by non-residents for work performed within the city. The current rates are 3.75% for residents and 3.44% for non-residents. As an employer, you are responsible for withholding the correct amount from each employee's pay based on their residency status and work location. If employees split time between Philadelphia and suburban offices, you must apportion wages based on the number of days worked in each location. You must also register with the Philadelphia Department of Revenue and file quarterly wage tax returns. Errors in wage tax withholding can result in penalties and interest assessed against the employer.
Philadelphia's regulatory environment — with its unique combination of city ordinances, Pennsylvania state law, and federal requirements — demands HR professionals who are thoroughly trained and constantly updated. HRTrainingCenter.com provides the expert-led programs that equip you to manage the complexity of Philadelphia's employment landscape with confidence and precision. Contact us today to build a training plan that addresses your team's specific compliance needs and career development goals.
For a comprehensive overview of Pennsylvania labor laws, visit our Pennsylvania HR Laws page.
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