Pennsylvania Employee Handbook Requirements: Complete Guide

Pennsylvania combines state-level employment laws with significant local ordinances — particularly in Philadelphia and Pittsburgh — that employers need to address in their handbooks. From the Pennsylvania Human Relations Act PHRA to the Wage Payment and Collection Law, here is what Pennsylvania employers should include. ## At-Will Employment Disclaimer Pennsylvania follows the at-will employment doctrine. Either party can end the employment relationship at any time for any legal reason. Your handbook should contain a clear at-will disclaimer, and you should be careful not to create implied contract obligations through detailed progressive discipline procedures or language that implies job security. ## Pennsylvania Human Relations Act PHRA The PHRA is Pennsylvania's primary anti-discrimination law. It prohibits employment discrimination based on race, color, religious creed, ancestry, age 40+, sex, national origin, disability, and the use of a guide or support animal. The PHRA applies to employers with four or more employees, a lower threshold than the 15-employee minimum under federal Title VII. Your handbook should include a comprehensive anti-discrimination policy covering all PHRA-protected classes. The Pennsylvania Human Relations Commission PHRC enforces the PHRA and has a work-sharing agreement with the EEOC, meaning a charge filed with one agency can be cross-filed with the other. ## Anti-Harassment Policy Pennsylvania does not have a standalone anti-harassment statute, but harassment based on any PHRA-protected characteristic is prohibited. Your handbook should include a detailed anti-harassment policy with clear definitions of prohibited conduct, multiple reporting channels, a commitment to prompt investigation, and anti-retaliation protections. ## Wage Payment and Collection Law The Pennsylvania Wage Payment and Collection Law governs how and when employees must be paid. Employers must establish regular paydays and pay employees on time. The law also regulates permissible deductions from wages — employers cannot make deductions beyond those authorized by law or agreed to in writing by the employee. Upon separation, employees who are terminated must receive their final pay by the next regular payday. Employees who quit must also be paid by the next regular payday. Your handbook should specify payroll schedules, authorized deductions, and final pay procedures. ## Overtime and Minimum Wage Pennsylvania's Minimum Wage Act sets the state minimum wage at $7.25 per hour matching the federal rate, though many localities have called for increases. Overtime is required at 1.5 times the regular rate for hours worked over 40 in a workweek for non-exempt employees. Your handbook should explain wage rates, overtime eligibility, and employee classifications. ## Workers' Compensation Pennsylvania requires almost all employers to carry workers' compensation insurance under the Workers' Compensation Act. Your handbook should explain how to report workplace injuries, the claims process, return-to-work expectations, and the prohibition against retaliating against employees who file workers' comp claims. ## Philadelphia Fair Practices Ordinance Employers operating in Philadelphia face additional requirements under the Philadelphia Fair Practices Ordinance, which provides broader anti-discrimination protections than state law. Protected categories include gender identity, domestic partner status, and familial status, among others. Philadelphia also prohibits employers from inquiring about salary history during the hiring process. If you have employees in Philadelphia, your handbook should include a section addressing these additional protections. ## Pittsburgh Paid Sick Days Act Pittsburgh requires employers with 15 or more employees to provide up to 40 hours of paid sick leave per year. Smaller employers must provide up to 24 hours of unpaid sick leave. Employees accrue one hour of sick time for every 35 hours worked. If you operate in Pittsburgh, your handbook must explain these sick leave provisions. ## Jury Duty Pennsylvania law protects employees from termination or retaliation for serving on a jury. Employers are not required to pay employees during jury service unless they are retail or service industry employees called for federal jury duty in certain circumstances. Your handbook should explain your jury duty leave policy and anti-retaliation protections. ## Military Leave Under Pennsylvania's Military Leave of Absence Act, employees who are members of the armed forces are entitled to unpaid leave for military duty and must be reinstated to their prior position upon return. This works alongside federal USERRA protections. Your handbook should address military leave procedures and reemployment rights. ## Crime Victim Leave Pennsylvania law provides leave protections for employees who are victims of or witnesses to crimes and need to attend legal proceedings. Your handbook should acknowledge this right and explain how employees can request time off for court appearances. ## Drug Testing Pennsylvania does not have a comprehensive drug testing law for private employers, giving businesses flexibility. However, employers should ensure their drug testing policies are applied consistently and do not discriminate against employees in protected classes. If your company drug tests, your handbook should explain when testing occurs and what the consequences of a positive result are. ## Leave Policies Pennsylvania does not mandate paid sick leave, paid family leave, or paid vacation at the state level. Employers must comply with federal FMLA if they have 50 or more employees. Your handbook should clearly describe all leave benefits your company provides and how they coordinate with any legally required leave. ## Recent Changes and Upcoming Legislation Pennsylvania has seen ongoing debate around increasing the state minimum wage, implementing statewide paid sick leave, and expanding anti-discrimination protections. Philadelphia and Pittsburgh continue to pass local employment ordinances that may affect your handbook. Employers should review their handbooks annually and monitor developments in their local jurisdictions. ## Frequently Asked Questions Is a handbook required in Pennsylvania? No state law mandates an employee handbook. However, a handbook is the most practical way to communicate your policies and meet various notice requirements under the PHRA, Wage Payment and Collection Law, and local ordinances. Does Pennsylvania require paid sick leave? Not statewide. Pittsburgh mandates paid sick leave for larger employers, and Philadelphia has its own sick leave requirements. Check your local jurisdiction for applicable rules. What wage deductions are allowed in Pennsylvania? Only deductions authorized by law taxes, garnishments or specifically authorized in writing by the employee are permitted. Unauthorized deductions — even for shortages or damaged property — can violate the Wage Payment and Collection Law. Do I need to address Philadelphia-specific laws if only some employees work there? Yes. Any employee working in Philadelphia is covered by Philadelphia's local employment ordinances, including the salary history ban and expanded anti-discrimination protections. Your handbook should include a Philadelphia-specific section for those employees. ## Build a Pennsylvania-Compliant Handbook Navigating Pennsylvania's state laws alongside Philadelphia and Pittsburgh ordinances takes careful planning. Rulewize generates a handbook tailored to your Pennsylvania business — covering PHRA, wage and hour rules, and local requirements — so you stay compliant without the guesswork.