Pennsylvania Paychecks laws & HR compliance analysis

Pennsylvania Paychecks: What you need to know

Wages include all earnings of an employee whether calculated based on time, task, piece, commission, or other method of calculation. The term also includes fringe benefits or wage supplements whether payable by the employer from his funds or from amounts withheld from the employee's pay by the employer (PA 1961 Act 329, Sec. 2.1).
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Employers must designate a regular payday and pay all wages due according to its established plan (PA 1961 Act 329, Sec. 3). Commissions are considered wages and, thus, must be paid on regular paydays designated in advance by the employer. Unless there is a contract between the employer and the employee to the contrary, wages must be paid within 15 days of the end of the pay period (14 days for railroad employees) or according to industry custom (PA 1961 Act 329, Sec. 3). Payment for overtime must be paid no later than the next succeeding pay period.
Wages may be paid in cash or by check, redeemable without charge, at a bank or elsewhere.
Direct deposit. Wages may be paid by direct deposit into an employee's bank or other financial institution provided the employee has given prior written authorization. Employees must be informed of the terms and conditions for terminating any direct deposit arrangement and must be provided with a written statement of each deposit. State law doesn’t explicitly allow employers to require direct deposit, but at least one Pennsylvania court has implicitly endorsed the practice (Statler v. Unemployment Comp. Bd. of Review, 728 A.2d 1029 (Pa. Commw. Ct. 1999)).
Payroll cards. Employers may pay employees by payroll card (PA 2016 Act 161, Sec. 2.1) if the employees have given authorization either electronically or in ...

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Pennsylvania Paychecks Resources

Type Title
Forms Application for Exemption from Payroll Direct Deposit
Policies Paychecks
See all Paychecks Resources