For Philadelphia’s massive service industry, taking a sick day has historically meant losing out on the tips that make up the bulk of a server’s income. The POWER (Protect Our Workers, Enforce Rights) Act, which sees its final implementation milestones this January, officially fixes the “sick pay gap” for tipped workers.
A Fairer Formula
Previously, tipped workers were often paid the city’s standard minimum for sick time. Starting January 1st, a new formula determines their pay.
- The Calculation: Employers must now pay tipped workers a sick-time rate based on a numerical average of the hourly wages for bartenders and waiters in Pennsylvania, as published by the Department of Labor.
- Anti-Retaliation: The law introduces a “rebuttable presumption” of retaliation. If a server is fired or has their hours cut within 90 days of taking a legal sick day, the burden is on the employer to prove it wasn’t a retaliatory move.
- Bad Actor Database: The city will now maintain a public “Bad Actors” database for employers who repeatedly violate wage and sick leave laws, potentially leading to the loss of their business license.
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