Summary of July 2025 Labor Law Updates for Philadelphia, Pennsylvania
Welcome to our July 2025 labor law update for Pennsylvania, brought to you by the Philadelphia team at HKM Employment Attorneys. This month’s roundup highlights new laws, pending legislation, and significant municipal-level developments that affect employees, HR professionals, and compliance leaders across the state.
July 2025 brought notable developments in Pennsylvania labor law—from the enactment of the Veterans’ Posting Act and the POWER Act in Philadelphia, to active wage transparency and minimum wage reform legislation. Employers, HR leaders, and compliance teams should begin preparing for these changes, monitor legislation, and update policies to stay compliant. For assistance navigating these updates, contact HKM Employment Attorneys at https://hkm.com.
Pennsylvania Veterans’ Benefits and Services Workplace Posting Act — Legislation
Date: Signed into law on July 7, 2025
Summary: Governor Shapiro signed House Bill 799, requiring employers with more than 50 full-time employees at Pennsylvania worksites to post a uniform notice regarding federal and state veterans’ benefits, the VA Crisis Line, and county veterans’ affairs contacts. The posting may be digital (e.g., intranet), and the requirement takes effect January 2026. The official posting content will be provided by the Pennsylvania Department of Labor and Industry.
Implications: Employers meeting the threshold should prepare for compliance by January 2026. Once the department issues the official poster, employers should arrange prompt display—either physically or online—to meet requirements.
POWER Act – Philadelphia Protect Our Workers, Enforce Rights Act — Municipal Legislation
Date: Enacted July 1, 2025
Summary: Philadelphia’s POWER Act expands protections in several areas for workers within city limits:
- Grants paid sick leave to probationary employees covered by unions.
- Raises the tip threshold from $30 to $50 per month and adjusts paid sick leave rates for tipped workers.
- Allows immigrant workers and independent contractors to file wage theft claims.
- Strengthens anti-retaliation protections—with a rebuttable presumption if adverse action occurs within 90 days of protected activity.
- Enables the Department of Labor’s Office of Worker Protections to certify statements for immigration-related visas.
- Establishes administrative and court remedies for violations, including fines up to $2,000 per violation, potential license or contract suspensions, and placement on a “Bad Actors” list after repeated infractions.
Implications: Employers operating in Philadelphia must update policies, postings, and training to comply. They should notify employees of their rights and prepare for heightened enforcement. Review classification structures and ensure wage compliance, particularly for tipped and probationary staff.
House Bill 630 — Pending Legislation
Date: Active in July 2025 legislative session (pending)
Summary: HB 630, currently progressing through the Pennsylvania General Assembly, proposes:
- Banning consideration of an applicant’s pay history in wage negotiations.
- Prohibiting “gag orders” preventing employees from discussing compensation.
- Requiring published pay ranges in job advertisements.
Implications: If enacted, HB 630 would significantly impact hiring practices and transparency obligations. Employers should monitor the bill’s progress, review current practices around pay discussions, and plan to update job postings and pay-setting procedures.
Minimum Wage Increase Bill Advances — Legislation
Date: Bill advanced to Senate as of June 28, 2025
Summary: House Bill 1549 proposes raising the minimum wage to:
- $15/hour in Philadelphia starting January 1, 2026;
- $12/hour in many surrounding populous counties in 2026, increasing gradually to $15 by 2028;
- $10/hour in all other counties in 2026, increasing to $12 by 2028.
- Tipped minimum wage would rise to 60% of the new amounts. From 2029 onward, wages would adjust annually per CPI.
Implications: Employers across Pennsylvania should begin planning for upcoming wage adjustments. Philadelphia-based employers face a $15 minimum wage as early as next year, while businesses in other areas should track the phased increases and CPI indexing. Tip pay frameworks must also be updated accordingly.
Conclusion: Looking Back on Pennsylvania’s Labor Law Updates from July 2025
With Pennsylvania courts continuing to clarify rights around wage-and-hour, discrimination, severance and contract disputes, and hostile work environments, having expert local counsel is vital. At HKM Employment Attorneys in Philadelphia, our dedicated team—including Brian Benestad, Amy Mathieu, and Stephanie Solomon—handles everything from breach of contract, data breach, and wrongful termination to FMLA/ADA accommodations and hostile workplace claims. We provide clear guidance, personalized support, and no‑fee‑unless‑we‑win advocacy. If recent developments in Philadelphia’s courts hit close to home, contact our Philadelphia office to explore how we can help enforce your rights and pursue justice.
