Wednesday, October 28, 2026
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TotalSource - WFN (State Alerts)
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Key Takeaways
Impacted Employers: Employers with 10 or more employees
Effective Date: July 1, 2026, through June 30, 2027
Summary: Covered employers must pay tipped workers $17.88 per hour for paid sick leave from July 1, 2026 through June 30, 2027. The city recalculates this rate annually.
Next Steps: Review and update pay policies and procedures, and train managers on the guidance.
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The Details
The City of Philadelphia has provided guidance that clarifies that, from July 1, 2026, through June 30, 2027, employers with 10 or more employees must pay tipped workers $17.88 per hour for paid sick time. The city recalculates this rate annually.
Background
Under Philadelphia law, a tipped employee is an individual who customarily and regularly receives more than $50 a month in tips (such as bartenders, waiters, waitresses, dining room and cafeteria attendants, and other similar jobs).
Additionally, all Philadelphia employers must:
- Provide at least one hour of sick time for every 40 hours worked, up to 40 hours in one calendar year. Employers with 10 or more employees must provide paid sick leave, those with with nine or fewer employees must provide unpaid sick leave.
- Keep records of how sick time is earned and used for three years.
Note: Philadelphia’s paid sick leave law does not cover independent contractors, seasonal workers, adjunct professors, employees hired for a term of less than six months, interns, pool employees, Federal, State and City employees, and non-probationary employees covered by a bona fide collective bargaining agreement.
Next Steps
Employers with 10 or more employees should review and update pay policies and procedures and train managers on the guidance.