Pennsylvania Employment Contract Template

A Pennsylvania employment contract is a written agreement between an employer and employee. It outlines duties, pay, benefits, and termination terms. Pennsylvania follows the at-will employment rule, meaning either party can end the relationship at any time unless a contract or law provides otherwise.

• At-will employment: Employment is presumed at-will unless modified by a contract or collective bargaining agreement. Exceptions apply for discrimination, retaliation, or public policy violations.
• Minimum wage: $7.25/hour (same as federal). Tipped employees must earn at least $2.83/hour in direct wages plus tips to meet the minimum.
• Overtime: Non-exempt employees must receive 1.5× pay for hours worked over 40 per week.
• Meal/rest breaks: No state law requiring breaks for adults. Minors under 18 must receive a 30-minute meal period after 5 consecutive hours.
• Paid leave: Pennsylvania does not mandate paid vacation or sick leave statewide. Philadelphia and Pittsburgh have local ordinances requiring paid sick leave for certain employers.
• Pay frequency: Wages must be paid on regular paydays, typically semimonthly or monthly.
• Final pay: All wages are due by the next scheduled payday after termination (Pennsylvania Statutes Title 43 PS § 260.5).
• Child labor: Minors under 14 cannot work except in limited cases. Ages 14–15 face restrictions on hours during school and cannot work in hazardous occupations. Ages 16–17 have hour limits during school and summer breaks. Work permits are required.
• Non-competes: Enforceable if supported by adequate consideration and reasonable in duration, geography, and scope of work. Most non-competes for healthcare employees have now been banned in Pennsylvania.
• E-signatures: Pennsylvania recognizes electronic records and signatures under the Uniform Electronic Transactions Act.
• Recordkeeping: Employers must keep payroll and hour records for at least 3 years.

Follow these steps to draft a Pennsylvania employment contract that protects both employer and employee:

1. Add party details: List employer and employee names, job title, and start date.
2. Define job duties: Outline responsibilities, supervisor, and work location.
3. Set pay and schedule: State hourly wage or salary, pay frequency, and overtime eligibility under state and federal rules.
4. Include breaks and leave: Specify any meal/rest breaks and leave policies, especially if operating in Philadelphia or Pittsburgh, where paid sick leave is required.
5. List benefits: Document PTO, holiday, health insurance, or other perks offered.
6. Add confidentiality and IP terms: Protect sensitive information and clarify ownership of work-related creations.
7. Restrictive covenants: If including non-compete or non-solicit clauses, ensure they are supported by consideration and reasonable in scope and that they comply with state laws.
8. Termination terms: Confirm at-will status unless otherwise limited, and note final pay rules.
9. Finalize contract: Include a governing law clause (Pennsylvania law applies) and confirm that e-signatures are valid.