Navigating employment law in Philadelphia can be complex for both employers and employees. The city, like the rest of Pennsylvania, is subject to a variety of laws governing workplace behavior, compensation, benefits, and employee rights. Philadelphia also has several local regulations that supplement state and federal laws, adding additional protections for workers in specific areas like anti-discrimination, paid sick leave, and minimum wage.
This guide will help you understand the key elements of Philadelphia employment law, providing essential information on everything from worker protections and wage laws to harassment and wrongful termination.
Overview of Employment Law in Philadelphia
Employment law is a broad area that encompasses various legal standards and regulations that define the rights and obligations of both employers and employees. In Philadelphia, these laws come from federal, state, and local sources:
- Federal employment laws, such as the Fair Labor Standards Act (FLSA) and the Civil Rights Act, provide baseline protections against workplace discrimination, guarantee minimum wage and overtime rights, and regulate employee leave.
- Pennsylvania state employment laws include protections related to worker safety, unemployment compensation, and employment contracts. They also define the at-will employment doctrine, which allows either party to terminate employment at any time, with or without cause, unless otherwise agreed.
- Philadelphia’s local ordinances add specific regulations like the Fair Workweek Ordinance, wage theft protections, and the city’s anti-discrimination laws that expand protections beyond state and federal standards.
Each of these legal frameworks operates together to shape employment law in Philadelphia. Understanding your rights and responsibilities as an employer or employee begins with knowing how these laws intersect.
At-Will Employment in Pennsylvania
Like most U.S. states, Pennsylvania follows the at-will employment doctrine. Under this rule, employers and employees are free to terminate the employment relationship at any time, for any reason, or for no reason at all, as long as the termination does not violate any specific legal protections.
Exceptions to At-Will Employment
There are several important exceptions to at-will employment:
- Contractual Agreements: If there is an employment contract or a collective bargaining agreement, the terms of the contract dictate the conditions under which employment can be terminated. Contracts often include specific grounds for termination, severance agreements, or requirements for notice.
- Discrimination: Employers cannot terminate an employee for reasons that violate anti-discrimination laws, such as those based on race, gender, age, disability, religion, or national origin. Both federal and local laws offer significant protections in this area.
- Public Policy Violations: Employers cannot terminate an employee for reasons that violate public policy, such as firing an employee for filing a workers’ compensation claim, serving jury duty, or reporting illegal activities (whistleblowing).
- Retaliation: Employees are protected from retaliatory termination if they have engaged in legally protected activities, such as reporting harassment, participating in investigations, or filing complaints about unsafe working conditions.
Wrongful Termination Claims
If an employee believes they were terminated for an illegal reason, they may file a wrongful termination claim. Wrongful termination is a legal term for firing an employee in a way that violates their employment rights. Common reasons for wrongful termination lawsuits include discrimination, retaliation, or breach of an employment contract.
To succeed in a wrongful termination claim, employees generally need to provide evidence that the termination violated specific legal protections. Documentation, witness testimony, and communications between the employer and employee can all be relevant in these cases.
Wage and Hour Laws in Philadelphia
Wage and hour laws set standards for how employees are paid and how long they can work. In Philadelphia, these laws are governed by a combination of federal, state, and local regulations, with the most notable including minimum wage requirements, overtime laws, and rules about wage theft.
Minimum Wage in Philadelphia
Philadelphia follows the Pennsylvania state minimum wage, which is currently set at $7.25 per hour, the same as the federal minimum wage. However, Philadelphia has enacted higher minimum wage standards for certain workers:
- City Contractors and Subcontractors: Workers employed by companies that contract with the city must be paid a minimum wage of $15 per hour, as part of Philadelphia’s Living Wage Ordinance.
- Tipped Employees: Tipped workers, such as servers in restaurants, may be paid a base wage lower than the standard minimum wage, but their tips must bring their total earnings up to at least $7.25 per hour. If the tips do not reach that level, the employer is required to make up the difference.
Overtime Pay
Under both state and federal law, most employees are entitled to overtime pay at a rate of 1.5 times their regular hourly wage for any hours worked beyond 40 in a single workweek. This applies to hourly workers and certain salaried employees, but there are exemptions for specific roles such as executives, administrative professionals, and outside salespeople.
Philadelphia’s Wage Theft Prevention
Philadelphia has enacted strong wage theft protections to safeguard workers from employers who fail to pay them properly. The city’s Wage Theft Ordinance allows workers to file complaints if they believe they have been underpaid, denied overtime, or otherwise shorted in their pay. Employers found guilty of wage theft may face fines, be required to pay back wages, and could even lose their business licenses.
Fair Workweek Law
Philadelphia has implemented a Fair Workweek Ordinance, which applies to workers in the hospitality, retail, and food services industries. This law requires employers to provide employees with advance notice of their work schedules, offering stability and predictability in scheduling. Key provisions include:
- Employees must be given two weeks’ notice of their schedule.
- If the employer changes the schedule within that two-week period, employees may be entitled to compensation for the shift change.
- Employees have the right to rest periods of at least nine hours between shifts (also known as “clopening” restrictions).
The law aims to reduce the unpredictable schedules often faced by low-wage workers in industries like retail and food service.
Discrimination and Harassment in the Workplace
Philadelphia has robust anti-discrimination laws that protect workers from unfair treatment based on a variety of protected characteristics. While federal laws such as Title VII of the Civil Rights Act of 1964 provide foundational protections against discrimination, Philadelphia’s local ordinances expand these rights even further.
Protected Classes in Philadelphia
In addition to the federally recognized protected classes (race, color, religion, sex, national origin, age, and disability), Philadelphia law also prohibits discrimination based on:
- Sexual orientation
- Gender identity
- Marital status
- Domestic or sexual violence victim status
- Familial status
- Source of income
These protections apply to all aspects of employment, including hiring, promotions, wages, benefits, and termination. Employers cannot treat an employee unfairly based on any of these characteristics.
Harassment in the Workplace
Workplace harassment, including sexual harassment, is considered a form of discrimination and is strictly prohibited by both federal and local law. Harassment includes any unwelcome conduct based on a protected characteristic that creates a hostile work environment or results in adverse employment actions (such as firing or demotion).
Employees who believe they have been harassed in the workplace can file complaints with the Equal Employment Opportunity Commission (EEOC) or the Philadelphia Commission on Human Relations (PCHR). These agencies investigate complaints, attempt to mediate disputes, and may pursue legal action against employers if harassment is found to have occurred.
Family and Medical Leave in Philadelphia
The Family and Medical Leave Act (FMLA) provides federal protections for employees who need to take time off from work to care for a family member, recover from an illness, or welcome a new child. Under FMLA, eligible employees are entitled to 12 weeks of unpaid leave in a 12-month period for qualifying reasons, including:
- The birth or adoption of a child.
- Caring for a spouse, child, or parent with a serious health condition.
- The employee’s own serious health condition.
- Certain circumstances related to a family member’s military service.
Philadelphia’s Paid Sick Leave Law
In addition to FMLA, Philadelphia has enacted its own Paid Sick Leave Law, which provides additional protections for workers who need time off for health-related reasons. Under this law:
- Employers with 10 or more employees must provide paid sick leave to their workers.
- Workers accrue one hour of sick leave for every 40 hours worked, up to a maximum of 40 hours per year.
- Sick leave can be used for the employee’s own illness, to care for a family member, or to address needs related to domestic violence.
This law ensures that workers in Philadelphia can take time off when they or their family members are sick without losing income or risking their job.
Philadelphia’s Anti-Retaliation Protections
Employees in Philadelphia are protected from retaliation if they exercise their legal rights. Retaliation occurs when an employer punishes an employee for engaging in a legally protected activity, such as:
- Filing a complaint about discrimination or harassment.
- Reporting wage theft or unsafe working conditions.
- Requesting family or medical leave.
- Exercising their rights under the Paid Sick Leave Law or the Fair Workweek Ordinance.
Retaliation can take many forms, including termination, demotion, reduced hours, or negative performance reviews. Philadelphia’s anti-retaliation laws ensure that employees can assert their rights without fear of retribution.
Workers’ Compensation in Philadelphia
Workers’ compensation laws provide benefits to employees who are injured or become ill as a result of their job. In Pennsylvania, all employers are required to carry workers’ compensation insurance to cover medical expenses and lost wages for employees who suffer work-related injuries or illnesses.
What Workers’ Compensation Covers
Workers’ compensation provides several types of benefits:
- Medical Coverage: Workers’ compensation pays for medical treatment related to a work injury or illness, including doctor visits, hospital stays, surgeries, and medications.
- Lost Wages: If an employee is unable to work due to their injury or illness, workers’ compensation provides partial wage replacement. Typically, this is around two-thirds of the employee’s average weekly wage.
- Disability Benefits: If the injury results in a temporary or permanent disability, workers’ compensation may provide additional benefits to account for the loss of earning capacity.
- Death Benefits: If a work-related injury or illness leads to death, workers’ compensation may provide benefits to the employee’s family to cover funeral expenses and lost income.
Filing a Workers’ Compensation Claim
Employees who suffer a work-related injury or illness must notify their employer within 120 days of the incident. The employer is then required to file a report with their insurance carrier, which will begin the claims process.
If the claim is denied, the employee has the right to appeal the decision through the Pennsylvania Workers’ Compensation Office of Adjudication.
Conclusion: Navigating Employment Law in Philadelphia
Employment law in Philadelphia is complex and involves a mix of federal, state, and local regulations. For both employers and employees, understanding the key provisions of these laws is essential to ensuring a fair and equitable workplace.
Employers should familiarize themselves with their obligations under Philadelphia’s employment laws to avoid costly legal disputes and maintain a positive work environment. Employees should be aware of their rights and know how to seek help if they believe their employer has violated the law.
Whether you’re concerned about wage theft, discrimination, retaliation, or workplace safety, Philadelphia has put in place numerous protections designed to promote fairness and ensure that workers’ rights are upheld.
