The Payroll Factory, Inc. August 3rd, 2022 Special Alert Newsletter
Good morning. This Friday August 5th, 2022, Pennsylvania will enact new regulations concerning tipped employees working in the hospitality industry within the Commonwealth. The new regulations as of this Friday are as follows:
1. Increasing the amount of tips for a “tipped employee” received monthly from $30 to $135 before an employer can reduce an employee’s hourly wage from $7.25 per hour to the as low as $2.83 per hour.
2. The 80/20 rule where an employee must spend 80% of their time on duties that directly generate tips for an employer to take a tip credit.
3. The regulations allow for Tip Pooling among employees with the exception in most cases managers, supervisors and business owners.
4. Employers can no longer deduct credit card and other non-cash payment processing transaction fees from the employee’s tips.
5. Employers are now obligated to clarify automatic service charges are not gratuities for tipped employees.
Please feel free to circulate this newsletter to your staff and your clients who have tipped employees. As always “whatever it takes,” I look forward to working with you, your staff and above all your clients.
Sincerely,
Steve Sabel
Senior Account Relationship Manager
The Payroll Factory, Inc.
18 East Lancaster Avenue
Malvern, Pennsylvania 19355
267-907-4179 cell
steve@prfusa.com
www.thepayrollfactory.com
