A Pennsylvania employment contract outlines the terms of employment between an employer and an employee. An employment contract ensures both parties know what is expected of one another, such as the job responsibilities of the employee and the compensation the employer will pay.
In Pennsylvania, a contract needs certain elements to be valid, including an offer, acceptance, and consideration. Under Pennsylvania law, a contract is a written agreement for the procurement of services executed by all parties under the Commonwealth Attorneys Act [1] .
- Laws: Title 34
- Definition of Employee: According to the Pennsylvania Office of Unemployment Compensation, an employee is any individual who performs services for which the worker is paid.
By Type
Independent Contractor Agreement
Creates a relationship between a client and a contractor.
Subcontractor Agreement
Establishes the expectations for a contractor-subcontractor relationship.
Non-Compete Agreement
Protects the employer and bans the employee from revealing company information to competitors.
Hiring in Pennsylvania
You need to know Pennsylvania’s labor laws and regulations before you start writing a Pennsylvania employment contract.
At-Will Employment
Pennsylvania is an at-will employment state. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied Contract: No
- Good-Faith Exception: No
Minimum Wage ($/hr)
Pennsylvania follows the federal minimum wage of $7.25/hour. If an eligible employee works more than 40 hours in a single week, their employer must pay them overtime pay (time-and-a-half). Compensatory time off in place of overtime pay is illegal [2] .
Child Labor
Pennsylvania requires employment certificates for minors under 18 [3] .
Age certification is not required in Pennsylvania.
Payday
Pennsylvania does not have a minimum frequency for paydays. However, employers are expected to pay employees on regularly scheduled paydays designated in advance by the employer. On hiring an employee, the employer must notify them of the time and place of payment, the rate of pay, and the amount of fringe benefits or wage supplements they will receive [4] .
Meal and Rest Breaks
Pennsylvania does not require minimum paid breaks or meal periods.
Recordkeeping Requirements
Pennsylvania employers must keep payroll records for at least three years [5] and wage differential records for at least one year [6] . Other recordkeeping requirements include:
- Unemployment Insurance: 4 years
- Discrimination: 120 days after the employee’s termination or until the final disposition of a claim
Sample
Download a Pennsylvania employment contract template below in PDF or Word format.
