Pennsylvania's minimum wage is still $7.25: what it means for hiring

Pennsylvania's state minimum wage has long matched the federal rate of $7.25 an hour, and the state has not raised it for years. Yet few restaurants in the state actually pay $7.25 to a cook. This guide is about the gap between the law and the market, and about what a restaurant owner should plan for if the law changes. It was written in October 2026, so confirm the current wage and tipped wage rules with the Pennsylvania Department of Labor and Industry before you set pay.

What is the wage law today?

Pennsylvania's state minimum matches the federal rate. For tipped workers, the law lets an employer pay a lower cash wage and count tips toward the minimum, with the employer making up the difference if tips fall short. The amount of the cash wage, the monthly tip threshold that makes a worker a tipped employee and the limits on non-tipped duties are set by the state and federal rules, so take them from the Department of Labor and Industry, not from a payroll website. Card processing fees may not push a worker below the minimum.

Is the law about to change?

Possibly, but this guide has not confirmed it. Bills to raise the minimum wage have been proposed in Pennsylvania from time to time, and news reports about the legislature can change every week. Treat reports as signs of pressure, not as a rule. Check the legislature's bill status page and the Department of Labor and Industry before you change pay, and plan for several outcomes.

What do neighboring states pay?

Neighboring states have set their own minimum wages, and some are higher than Pennsylvania's. That matters for restaurants near the borders, where workers can cross for a few dollars more and some do. If you are in Erie, the Lehigh Valley, Pittsburgh's suburbs or a county on the Maryland line, your real competition for staff includes the next state. Look up the current minimum in the neighboring state on its labor department's website.

What do restaurants actually pay?

More than the minimum, because the market sets the wage. Cooks, dishwashers and counter staff are usually paid well above $7.25, since a lower offer cannot compete with warehouse, retail and delivery jobs. Check what restaurants near you advertise, and what a new hire at a nearby warehouse earns. If your offer is the lowest on the block, you will have the longest list of open shifts.

How should you plan if the minimum goes up?

Do the arithmetic on your payroll before it happens. List every hourly worker, their wage and weekly hours, and see what happens if the minimum rises to a specific figure. Workers earning above that figure may expect a raise to keep the gap. Update your menu and your sales targets accordingly. Consider the tipped wage separately, because a legislative change could shorten or end the tip credit, which affects server pay and your payroll tax. Talk to your accountant now, not after the law changes.

What else matters besides the wage?

Reliability, scheduling and respect. Staff leave jobs because of unpredictable hours, poor management and no path to a better role more often than because of 50 cents an hour. Offer stable schedules, meals during shifts, a clear route to a higher station, and quick payment of tips. A restaurant with low turnover has lower training costs than one that pays a little less and replaces people every month.

What should you do this month?

Check your pay against nearby jobs, review your tipped wage notices and records, and set a date to review the legislative status again. Keep payroll records for as long as the Department of Labor and Industry requires, because wage claims can reach back years. If you use a payroll service, ask it how it would handle a mid-year change.

It also helps to think about total labor cost, not just the hourly rate. Payroll taxes, workers' compensation insurance, paid sick leave where a local rule requires it, meals and training all add to the cost of a worker. A restaurant that raises wages a little, loses fewer people and spends less on hiring and training can end up with the same total cost and a better crew. Run those numbers before you decide that you cannot afford to pay more.

Finally, talk to your staff. People hear about a possible raise in the news and wonder what it means for them. A short, honest word from you, saying what you know, what you do not and how you will decide, builds trust and reduces rumors. Staff who understand that you have a plan are less likely to leave in the middle of a legislative debate.

Do you want more guests to cover the cost of better pay?

Mosey is a food-first app where diners search by dish and mood, rate what they ate and keep lists of places to try. Better pay has to be funded by more guests and a better check, and the way to get both is to be known for your best dishes. Mosey also gives your restaurant its own page and list of regular guests, so more of the people who like you come back.

More guides for your business:

• Pennsylvania tip pooling and service charge rules for restaurants
• Pennsylvania restaurants by the numbers: how to read the data
• Pennsylvania food manager certification and health inspections

More in the US guides for food businesses.