Overview of Hiring Laws in Pennsylvania

Pennsylvania employment laws largely align with federal standards while maintaining a unique approach that balances employer flexibility with worker protections. The Pennsylvania Department of Labor and Industry (DLI) and the Pennsylvania Human Relations Commission (PHRC) oversee most employment standards, including anti-discrimination protections, wage and hour rules, and new hire reporting.

One of the most notable aspects of Pennsylvania employment law is its current reliance on the federal minimum wage combined with pending legislative proposals to increase wages. Additionally, Pennsylvania’s approach to criminal history screening reflects a middle ground between full transparency and fair chance hiring protections.

These rules reflect Pennsylvania’s approach to maintaining business flexibility while providing worker protections through both state law and municipal ordinances.

Pennsylvania Hiring Laws

Anti-Discrimination and Equal Opportunity Laws

The Pennsylvania Human Relations Act (PHRA) covers discrimination in employment, housing, commercial property, education, and public accommodations. The PHRA prohibits unlawful discriminatory practices in employment because of race, color, religion, ancestry, age (40 and above), sex, national origin, non-job related disability, known association with a disabled individual, possession of a diploma based on passing a general education development test, or willingness or refusal to participate in abortion.

Additionally, Pennsylvania law protects individuals who use support animals (guide or support animals due to blindness, deafness, or physical handicap). In hospital and health care employment settings, it is illegal to discriminate against someone based on participation in abortion or sterilization procedures or refusal to participate in abortion or sterilization procedures.

In 2023, the PHRC released new regulations more clearly explaining the definitions of ‘sex,’ ‘religious creed,’ and ‘race,’ including traits associated with race such as hair texture and protective hairstyles (which does not infringe on employers’ rights to implement workplace safety standards).

Why the 4-employee threshold? Pennsylvania’s approach differs from the federal threshold of 15 employees. The PHRA defines “employer” as any person employing four or more persons within the Commonwealth. This lower threshold reflects Pennsylvania’s policy decision to extend protections to employees in smaller organizations, recognizing that discrimination can occur regardless of company size.

Employers are required to provide reasonable accommodations for individuals with disabilities unless it causes undue hardship. Employers must also maintain written policies addressing non-discrimination and equal employment opportunity.

Pay Equity and Minimum Wage

Pennsylvania’s state minimum wage is $7.25, which is the same as the federally mandated minimum, and has not changed since 2009. However, significant legislative activity is underway. Pennsylvania would raise its minimum wage to $15 an hour in 20 of its counties, and to $12 in the rest under a bill the Democratic-controlled state House passed. Specifically, House Bill 1549 would increase the minimum wage to $15 beginning Jan. 1, 2026 in Philadelphia, and after three years, the minimum wage would be adjusted for the cost of living each Jan. 1, reflecting increases in the Consumer Price Index (CPI). For the rest of the Commonwealth, the bill would increase the minimum wage in stages based on county population.

Important note for employers: State employees earn a higher minimum wage—in the summer of 2018, Governor Tom Wolf signed an executive order, increasing the minimum wage to $12 per hour for state employees (up from $10.20 per hour), which went into effect on July 1, 2018. State contractors have even higher requirements, with effective July 1, 2025, the minimum wage being $17.31/hour for state contractors.

For the most current minimum wage information, visit the Pennsylvania Department of Labor and Industry Wage Information Page.

If you receive more than $30 in tips per month, your employer may pay you $2.83 per hour if this amount plus tips equals at least the state minimum wage. If you make less than minimum wage, your employer must make up the difference by increasing your hourly rate.

Pennsylvania follows federal equal pay requirements. Employers should retain records demonstrating the basis for any wage differences between employees of different sexes performing substantially equal work.

Background Checks and Criminal History Rules

Pennsylvania’s approach to criminal history screening is nuanced. In 2017, Pennsylvania instituted a Ban the Box policy that removed the criminal history checkbox from all public sector job applications. Certain cities, including York and Philadelphia, instituted tougher versions of this policy.

Under Pennsylvania’s Criminal History Record Information Act (CHRIA), employers may only consider an applicant’s criminal history as it relates to misdemeanors and felony convictions, and only to the extent that the convictions may make you unsuitable for a job position. Why these limitations exist: The CHRIA reflects Pennsylvania’s recognition that people deserve a fair chance based on their qualifications and that criminal history shouldn’t automatically disqualify applicants, especially for convictions unrelated to the job.

Philadelphia-specific requirements: Starting January 6, 2026, Philadelphia’s Fair Criminal Record Screening Standards will significantly alter how employers are permitted to consider criminal history. Employers may now only consider misdemeanor convictions if the arrest or release from incarceration occurred within the past four years (shortening the previous seven-year lookback period), though felony convictions will remain subject to the seven-year period.

When using third-party background screening services, the Fair Credit Reporting Act (FCRA) applies. Employers must obtain written consent before running a background check and provide adverse action notices if denying employment.

I-9 and Employment Eligibility Requirements

Like all U.S. states, Pennsylvania employers are required to verify the identity and employment eligibility of new hires using Form I-9. Employers must complete Form I-9 within three business days of a new hire’s start date and retain forms for three years after hire or one year after termination, whichever is later.

State-Specific Hiring Rules

Pennsylvania enforces additional hiring-related requirements that employers should be aware of:

Penalties for Non-Compliance in Pennsylvania

Pennsylvania takes non-compliance seriously. Employers who fail to follow state and federal hiring laws can face significant financial and legal consequences.

• Wage and Hour Violations: Employers who violate minimum wage, overtime, and wage payment laws are subject to civil penalties. Violations can result in back wages, liquidated damages, and attorney fees.
• Discrimination Violations: If the Commission finds that the employer violated anti-discrimination ordinances, it may order any of the remedies available under the PHRA or require the employer to change practices, make restitution, and, in egregious instances, pay fines.
• Employee Lawsuits: You cannot be fired, disciplined, have your pay reduced, or your hours cut because you report discrimination. Employees can file complaints with the Pennsylvania Human Relations Commission or pursue civil lawsuits for discrimination or retaliation. Complaints may be filed within 180 days of the alleged act of discrimination.
• FCRA Violations: Improper background check procedures can result in fines of $1,000+ per applicant, with significantly higher exposure in class-action lawsuits.
• Form I-9 Violations: USCIS fines can range from $281 to $2,789 per form for paperwork errors, and $678 to $27,894 per violation for knowingly hiring unauthorized workers (as of 2025).
• New Hire Reporting Non-Compliance: Each year due to new hire reporting, more than $30 million is collected in child support in Pennsylvania, and over $2 million is recouped for employers through fraud detection. Failure to report timely can result in civil penalties.

Notice and Documentation HR Professionals Need to Know

HR professionals must maintain the following key documents to stay compliant:

• Completed Form I-9s for All New Hires- Federal law requires all employers to verify an employee’s identity and eligibility to work in the U.S. via Form I-9. These forms must be completed within three business days of hire and stored securely for the required retention period: either three years after the hire date or one year after termination, whichever is later. For additional guidance on I-9 compliance, consult the USCIS I-9 Handbook.
• New Hire Reporting to DLI- Employers must report all employees who reside or work in Pennsylvania to the Pennsylvania Department of Labor and Industry, including employees of all ages, those who work less than a full day, those still in a probationary period, part-time, seasonal, employees who are rehired, and those employees who may only work a few hours before termination. Reports can be submitted to the Pennsylvania Career Link New Hire Reporting Program. New hire information should be provided within twenty (20) days of the Date of Hire.
• Background Check Documentation- Employers must retain written consent forms, background check reports, and copies of any adverse action notices provided to applicants. These records should be kept for at least one year and demonstrate compliance with FCRA requirements and Pennsylvania’s criminal history restrictions.
• Written Policies on Non-Discrimination and Equal Opportunity- Employers are required to display clear, written policies outlining their commitment to equal employment opportunity and non-discrimination. These policies should be included in employee handbooks and posted in visible areas of the workplace to ensure accessibility for all staff, as required by the Pennsylvania Human Relations Act.
• Retention of Job Applications and Interview Notes- Pennsylvania employers are advised to retain job applications, interview notes, and hiring records for a minimum of two years. This documentation can be critical if hiring decisions are later questioned or challenged in discrimination complaints.
• Wage and Hour Records- Employers must maintain accurate records of hours worked, wages paid, and deductions for each employee. The Pennsylvania Department of Labor and Industry requires these records to be kept for at least three years and made available during audits or investigations.
• Criminal History Documentation- For employers in Philadelphia or municipalities with ban-the-box ordinances, maintain records demonstrating compliance with:
  • Written policies showing criminal history is considered only after initial interview or conditional offer
  • Documentation of adverse action notices provided to applicants
  • Records showing individualized assessments were conducted
  • Communications explaining business decisions
• Posters and Workplace Notices- Certain notices, such as those covering minimum wage, discrimination, workers’ compensation, unemployment insurance, and employee rights must be displayed prominently in the workplace. HR should routinely verify that all state and federal posters are up-to-date and clearly visible to employees. Posters are available through the DLI.