We want to let you know that the City of Philadelphia has enacted legislation (Bill Number 250065), which clarifies how to calculate the paid sick leave rate of pay for tipped employees.
The details
Background
The Promoting Healthy Families and Workplace Act (the “Act”) requires certain Philadelphia employers to provide employees who work in Philadelphia at least 40 hours a year with paid sick leave. Under the Act, an employee accrues one hour of sick leave for 40 hours worked, which includes any overtime. Exempt administrative, executive or professional employees accrue sick leave based on their normal workweek or a 40-hour workweek, whichever is less.
Employees are permitted to use 40 hours of paid sick time for:
- An existing health condition requiring diagnosis, care, or treatment;
- Preventative care; or
- Issues related to an employee being a victim of domestic violence, sexual assault, or stalking.
Bill Number 250065
Under the law, to calculate the hourly rate of pay for paid sick time for a tipped employee (an employee who customarily and regularly receives more than $50 per month in tips from the same employment), use the numerical average of the hourly wage for “Bartenders,” “Waiters & Waitresses,” and “Dining Room & Cafeteria Attendants & Bartender Helpers” as defined under the Standard Occupational Classification Code and as published for Philadelphia County by the Pennsylvania DOL.
Next steps
Review and update pay policies and procedures for calculating tipped employee’s sick leave rate of pay to ensure compliance with Bill Number 250065.
Need service support?
Please contact your ADP® Service Representative for support with entering an employee's sick leave rate of pay.