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What are the penalties for wage violations in Pennsylvania?

On Behalf of | Jan 27, 2025 | Business Litigation

Wage violations create serious challenges for both employers and employees in Pennsylvania. These issues often involve failing to pay overtime, withholding wages, or making improper paycheck deductions. To stay compliant, employers must understand the penalties for violating wage laws, and employees should know their rights to fair treatment.

Wage violations under Pennsylvania law

Pennsylvania employers must follow state and federal wage laws, including the Pennsylvania Minimum Wage Act and the Fair Labor Standards Act (FLSA). Common violations include not paying the state minimum wage of $7.25 per hour, misclassifying employees as independent contractors, and not paying overtime to eligible employees. Employers must also pay all earned wages on time.

When employers violate wage laws, employees can file complaints with the Pennsylvania Department of Labor & Industry (DLI) or take legal action to recover unpaid wages. The DLI investigates claims and imposes penalties based on its findings.

Financial penalties for wage violations

Employers who commit wage violations face significant financial consequences. The DLI requires them to pay all unpaid wages and overtime owed to employees. Employers may also need to pay liquidated damages equal to 25% of the unpaid wages. In lawsuits, employees can recover interest and legal fees if they win their case.

Repeat offenders or those who willfully break wage laws face higher penalties. These include additional fines and, in severe cases, criminal charges that could lead to imprisonment. These consequences aim to ensure compliance with wage laws and discourage future violations.

Protecting workers’ rights

Employees who experience wage violations must act quickly to protect their rights. Pennsylvania law sets specific time limits, known as statutes of limitations, to file wage claims. For most violations, employees have up to three years to file a complaint or lawsuit. Employers can avoid costly penalties by reviewing payroll practices and ensuring compliance with state and federal laws.

Understanding wage laws and their penalties helps both employers and employees maintain a fair and compliant workplace.

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