Wage Payment and Collection Law
43 Pa.C.S. §§ 260.1, et seq.
Pennsylvania's wage payment and collection law includes minimum wage and maximum hour provisions. It also mandates the what, how and when of an employee collecting his/her final earned "wages" (including accrued monetary fringe benefits, such as vacation pay), following separation from employment.
Generally, the law tracks the federal Fair Labor Standards Act ("FLSA") provisions for minimum wages and maximum work hours. For payment of final wages after separation from employment, the law generally provides that wages must be paid no later than the next regular pay day, based on that employer's pay schedule.
If final wages are not paid on time, the former employee may file an "administrative" claim with the PA Department of Labor and Industry, demanding payment of all wages claimed to be due and unpaid. Or, the employee can file a claim in court. If the employee chooses to hire an attorney to pursue the claim, the law provides for payment of legal fees, if the claim is successful.
This law is primarily driven by the definition of the term "wages." Most disputes under the law arise because of the different interpretations that employers and former employees place on what is or is not included in that term. For example, an employer and employee may disagree as to whether the term "wages" includes an employer's informal policy of providing severance benefits to separated employees. The courts have carved out the parameters of the term to a significant degree, but enough "gray area" remains to generate frequent disputes. This law is relatively clear, and disputes under the law are not frequent. In addition, the monetary amounts at issue are usually relatively small. However, in some cases involving long-term employment, for example, in which significant accrued benefits and/or severance benefits are at issue, but have not been paid, it may be worthwhile to consult with an attorney, particularly since the law provides for payment of legal fees upon successfully pursuing a claim.
For further information about the Wage Payment and Collection Law, including how to recognize a potential claim, Keith Kendall, P.C. offers a video on the Wage Payment and Collection Law that may help identify a potential claim under the law; as well as provide a basic understanding of the law that would make a legal consultation with a potential future attorney more productive for both the prospective client and future attorney.