Pennsylvania Payday Laws 2026: Pay Frequency, Timing, and Final Pay

Pennsylvania’s wage payment laws are among the more employee-protective in the mid-Atlantic region. The Pennsylvania Wage Payment and Collection Law (WPCL) provides employees with meaningful enforcement tools, including the right to sue for unpaid wages plus liquidated damages and attorney fees. Understanding these requirements — particularly around pay frequency, final pay, and deductions — is essential for any Pennsylvania employer.

1. Pay Frequency Requirements

Pennsylvania law requires employers to pay wages on a regular, predetermined schedule. The minimum required frequency depends on the employee’s role:

Salaried and Hourly Employees: Semi-Monthly Minimum

Most Pennsylvania employees must be paid at least semi-monthly — meaning at least twice per calendar month. There are no restrictions on paying more frequently (weekly or biweekly are common and permitted), but less frequent payment is generally not allowed for employees covered by the WPCL.

Laborer Exceptions

Certain categories of laborers in specific industries have additional requirements. Depending on the industry and local custom, some construction and trade workers have traditionally been covered by more specific payment schedules. Verify with the PA Department of Labor & Industry if you operate in a unionized trade or construction environment.

Exempt Employees

Executive, administrative, and professional employees who are exempt from overtime requirements under the FLSA may be paid on a salary basis, which typically involves semi-monthly, monthly, or biweekly payments. There is no specific statutory requirement for exempt employees beyond the general WPCL obligations, though paying less frequently than monthly is generally inadvisable.

2. When Must Pay Be Issued?

Pennsylvania requires that wages earned during a pay period be paid within the regular pay period schedule you have established. This means:

• Wages earned in the first half of the month (1st–15th) must be paid by the end of the month if you use a semi-monthly schedule, typically on or before the 15th and last day of the month.
• Wages must be paid on the regularly scheduled payday — not early (in most cases) and not late.
• If the regular payday falls on a weekend or holiday, wages should be paid on the preceding business day (not the following one) to avoid a technical late payment violation.

Maximum Lag Period

While Pennsylvania law does not specify an exact maximum lag period between the end of a pay period and the payday, the practical requirement is that the lag must be reasonable — typically not more than 7 to 15 days. Extremely long pay lags (e.g., paying monthly for work performed three weeks earlier) are inconsistent with the semi-monthly minimum frequency requirement and should be avoided.

3. Final Pay: Resigned and Terminated Employees

Pennsylvania law requires that final wages be paid to departing employees (both voluntary resignations and involuntary terminations) by the next regularly scheduled payday after the last day of employment. Pennsylvania does not require immediate payment on the day of termination — the next regular payday is always sufficient.

What Must Be Included in Final Pay

Final pay must include all wages earned through the last day of employment, including:

• Regular wages or salary for all hours worked.
• Overtime pay for any overtime hours worked in the final pay period.
• Commissions that have been fully earned (commissions that depend on future events, such as a deal closing after the employee’s last day, are subject to the agreement between employer and employee).
• Accrued paid time off (PTO), vacation, or sick leave — if your company policy or employment agreement promises payment of unused accrued time upon separation. Pennsylvania does not require payment of unused PTO on separation if your policy does not provide for it.

Accrued Vacation and PTO: Policy Controls

This is an important nuance: Pennsylvania does not have a statute requiring employers to pay out unused vacation or PTO upon separation. Whether you must pay it depends entirely on your written policy or employment agreement. If your policy says “unused vacation is paid out upon separation,” you must honor that. If your policy says “unused vacation is forfeited upon separation,” that is enforceable (as long as the policy is clear, consistently applied, and communicated to employees). Whatever your policy says, it must be applied consistently and cannot be changed retroactively to deny benefits already earned.

4. The Pennsylvania Wage Payment and Collection Law (WPCL)

The Pennsylvania Wage Payment and Collection Law (43 P.S. §§ 260.1–260.12) is the central state statute governing the payment of wages. It establishes the rights and remedies available to employees when employers fail to pay wages correctly and on time.

Key WPCL Provisions

• Right to timely payment: Employees have a statutory right to receive all earned wages on the regularly scheduled payday.
• Private right of action: Employees can file a lawsuit in court to recover unpaid wages without going through the PA Department of Labor & Industry first, though they can also file a department complaint.
• Liquidated damages: If an employer fails to pay wages without a good faith basis for withholding, the court may award the employee liquidated (additional) damages of 25% of the unpaid wages, or $500, whichever is greater.
• Attorney fees: If the employee prevails in a WPCL lawsuit, the employer is generally required to pay the employee’s reasonable attorney fees. This makes WPCL claims financially viable for employees to pursue even for relatively small unpaid amounts.
• Criminal penalties: The WPCL also provides for criminal penalties against employers who willfully fail to pay wages, including fines and potential imprisonment.

What the WPCL Covers

The WPCL covers all wages, salaries, piece-rate compensation, commissions, and other compensation due under an agreement between employer and employee. It does not apply to disputed wages — the employer must have a good-faith basis for believing a wage is not owed. Simply refusing to pay wages because of a dispute over the amount owed does not relieve the employer of paying the undisputed portion while the dispute is resolved.

5. Wage Deductions: Strict Rules

Pennsylvania law strictly controls what employers may deduct from employee wages. The default rule is that deductions are not permitted unless they fall into one of the specifically authorized categories.

Always Permitted Deductions

• Tax withholding: Federal and state income taxes, Social Security and Medicare (FICA), and local EIT.
• Court-ordered deductions: Garnishments for child support, alimony, tax levies, and other court orders. Employers must follow court garnishment orders.
• Voluntary benefit deductions: Health insurance premiums, retirement plan contributions (401(k), 403(b)), health savings accounts, and similar deductions for which the employee has signed a voluntary written authorization.
• Union dues: Where applicable, per a collective bargaining agreement.

Deductions That Require Written Authorization

Certain deductions require a written authorization from the employee before they can be taken. Written authorization must be:

• Voluntary (not coerced as a condition of employment, at least for deductions that are not a legal requirement).
• Specific about what is being deducted and why.
• Given before the deduction is taken (retroactive authorization is generally not enforceable).

Deductions That Are Prohibited or Restricted

• Damage to company property: Deducting the cost of broken or damaged equipment or property from wages requires careful legal analysis. Pennsylvania law limits this significantly, and such deductions can easily cross into illegal territory. Consult an employment attorney before deducting for alleged property damage.
• Cash register shortages: Deducting from wages to cover cash register shortfalls is generally prohibited in Pennsylvania unless the employee has agreed in advance and the deduction does not bring wages below minimum wage.
• Uniform costs: While employers can require uniforms, deducting the cost of uniforms from wages must be done carefully to avoid bringing the employee’s effective hourly rate below minimum wage.
• Training costs: Deducting training costs from wages (e.g., if an employee leaves after receiving company-paid training) is subject to significant restrictions and can violate the WPCL if done incorrectly.

6. Pay Stub Requirements

Pennsylvania requires employers to provide employees with a written statement of wages (a pay stub or earnings statement) with each paycheck. Required information on the pay stub includes:

• The employee’s name.
• The pay period dates (beginning and end of the period being paid).
• Hours worked (for hourly employees).
• The rate of pay (hourly rate or salary).
• Gross wages earned for the period.
• Each deduction taken and its purpose (taxes, benefits, garnishments, etc.).
• Net wages paid after all deductions.
• Year-to-date totals for wages and deductions are not strictly required by Pennsylvania law but are considered best practice and are required for W-2 accuracy.

Electronic Pay Stubs

Electronic pay stubs are permissible in Pennsylvania, provided employees have access to a means to view them (either a company computer during work hours or online access from any device). If an employee does not have reasonable access to electronic pay stubs, paper stubs must be provided.

7. Acceptable Methods of Payment

Pennsylvania allows wages to be paid in the following methods:

• Check: A check drawn on a bank with an office in Pennsylvania (or accessible through a PA bank).
• Direct deposit: Permitted with the voluntary written consent of the employee. Employers cannot require direct deposit as a condition of employment; employees must consent. Employees who do not consent must receive payment by check.
• Paycard (prepaid debit card): Permitted with voluntary employee consent. Employees must be able to make at least one free withdrawal per pay period equal to the full net wage amount. Monthly fees and balance inquiry fees must be minimal and disclosed in advance. Mandatory paycard programs (requiring all employees to use paycards) are not allowed.
• Cash: Permitted, though impractical for most employers. If paid in cash, you must still provide a written pay stub.

8. Overtime Pay Obligations

Pennsylvania follows the federal FLSA overtime rules for most employers: non-exempt employees must receive 1.5 times their regular rate of pay for all hours worked over 40 in a single workweek. Key points:

• Overtime is calculated on a workweek basis (a fixed, regularly recurring 168-hour period), not daily.
• Pennsylvania does not require daily overtime (e.g., overtime for working more than 8 hours in a single day), unlike California.
• The workweek is defined by the employer but must be consistently applied — it cannot be changed to avoid overtime obligations.
• Overtime pay must be included in the paycheck for the pay period in which the overtime was worked — it cannot be deferred to a future pay period.

For a complete guide to overtime exemptions and compliance, see our Pennsylvania Overtime and FLSA guide.

9. Employer Compliance Checklist

• ✅ Establish a fixed payroll schedule (biweekly or semi-monthly) and put it in writing in your employee handbook.
• ✅ Pay wages on the scheduled payday — not after.
• ✅ Pay all final wages by the next regular payday after separation, for both voluntary and involuntary terminations.
• ✅ Have a clear written policy on PTO/vacation payout upon separation — and enforce it consistently.
• ✅ Provide a detailed pay stub with every paycheck showing gross wages, all deductions, and net pay.
• ✅ Only take deductions that are legally authorized. Get written consent before taking any voluntary deductions.
• ✅ Never withhold wages as leverage or to settle a dispute. Pay undisputed wages on time and dispute through appropriate channels.
• ✅ Keep payroll records for at least 3 years (longer for tax purposes).
• ✅ Post required state and federal wage notices in a visible location.
• ✅ Calculate overtime for all non-exempt employees working more than 40 hours per workweek.

10. Frequently Asked Questions

Can I pay employees monthly in Pennsylvania?

Generally, no. Pennsylvania requires at least semi-monthly (twice per month) payment for most employees. Monthly payroll does not meet the semi-monthly minimum. Salaried exempt employees have more flexibility, but even for them, monthly payment is uncommon and should be reviewed with an employment attorney before implementing.

Does my employer have to pay me for unused vacation when I quit?

Only if your employer’s written policy or your employment contract promises it. Pennsylvania has no statute requiring vacation payout upon separation. Check your employee handbook. If the policy is silent or says vacation is forfeited, you are generally not owed payout — though any written promise is enforceable under the WPCL.

What can I do if my employer doesn’t pay me on time?

File a complaint with the Pennsylvania Bureau of Labor Law Compliance (part of the Department of Labor & Industry), or consult a private employment attorney about a WPCL lawsuit. The WPCL’s attorney fee provision means many attorneys take WPCL cases on contingency, making it accessible even for modest unpaid amounts.

Can an employer make me wait for my last paycheck until I return company property?

No. Pennsylvania law does not allow employers to withhold final wages pending return of company property. The employer can pursue a separate civil claim for unreturned property, but that is independent of the wage obligation. Withholding wages for unreturned property violates the WPCL.

Is direct deposit mandatory in Pennsylvania?

No. Employers can offer and encourage direct deposit, but they cannot require it as a condition of employment. Employees who decline direct deposit must be paid by check or another mutually agreed method.