How to Hire a New Employee in Pennsylvania (2026)
Reviewed by DocDraft Legal Team · Pennsylvania · Last updated 2026-05-18
A new Pennsylvania hire triggers both federal and state-level obligations from day one. In Pennsylvania, $7.25 per hour (federal floor under PA Minimum Wage Act, no state rate above federal); tipped minimum cash wage $2.83. Pennsylvania accepts new-hire reports with the report due employers must report all newly hired or rehired employees within 20 days of the hire date. (23 pa.c.s. § 4392(d)). This guide details the Pennsylvania requirements on minimum wage, UI registration, workers' compensation, E-Verify, posters, and at-will employment.
Key Considerations
On the wage side, Pennsylvania applies the federal FLSA floor (no separate state rate). $7.25 per hour (federal floor under PA Minimum Wage Act, no state rate above federal); tipped minimum cash wage $2.83. Authority:.
Pennsylvania runs two parallel registrations once a hire is made. The new-hire report goes Employers must report all newly hired or rehired employees within 20 days of the hire date. (23 Pa.C.S. § 4392(d)). The state unemployment insurance registration runs
Beyond payroll and registration, Pennsylvania layers three legal-risk controls onto the employment relationship. Workers' comp threshold: at least one employee E-Verify use: All employers in the construction industry in Pennsylvania will be required to use E-Verify. The at-will doctrine in Pennsylvania: In Pennsylvania (like a number of other states), workers will generally be considered to be “at will” employees unless they have an employment contract or statutory right that provides otherwise. An employer may terminate the services of an “at will” employee, with or without cause, at any time — as long as an employee is not let go for an unlawful purpose, such as age or racial discrimination.
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Relevant Documents
The document set for hiring in Pennsylvania, anchored to the state minimum-wage statute, includes: (a) federal Form I-9 (employment eligibility verification); (b) federal Form W-4 plus the Pennsylvania state withholding addendum where applicable; (c) the Pennsylvania new-hire report filed (Employers must report all newly hired or rehired employees within 20 days of the hire date. (23 Pa.C.S. § 4392(d)).); and (d) workers' compensation paperwork: at least one employee
Employee Handbook
A comprehensive document outlining company policies, procedures, work rules, benefits, and expectations. Provides important information to new employees and serves as a reference for all staff.
Employment Application Form
A standardized form for collecting information from job applicants including work history, education, skills, and references. This helps employers make informed hiring decisions and serves as documentation of the hiring process.
Employment Contract
A comprehensive legal agreement between employer and employee detailing all terms and conditions of employment including duties, compensation, benefits, termination procedures, and confidentiality requirements.
Employment Offer Letter
A formal document outlining the terms of employment including position, salary, benefits, start date, and other conditions. This establishes clear expectations and serves as evidence of the employment agreement.
Non-Compete Agreement
A contract that restricts an employee from working for competitors or starting a competing business for a specified period after employment ends. Enforceability varies significantly by state.
Non-Disclosure Agreement
Protects your confidential information, trade secrets, and intellectual property that you may need to share with the manufacturer during the course of your relationship. This should be signed before detailed discussions begin.
Relevant Laws
Pennsylvania Equal Pay Law
Prohibits wage discrimination based on gender for jobs requiring equal skill, effort, and responsibility. Employers in Pennsylvania must ensure equal pay for equal work regardless of gender.
Pennsylvania Human Relations Act
Prohibits discrimination in employment based on race, color, religious creed, ancestry, age (40+), sex, national origin, disability, or use of guide or support animals. Employers must follow non-discriminatory hiring practices.
Pennsylvania Minimum Wage Act
Sets the minimum wage requirements for Pennsylvania employers. While Pennsylvania's minimum wage matches the federal rate of $7.25/hour, employers must comply with this standard as a baseline for compensation.
Pennsylvania Child Labor Act
Regulates the employment of minors under 18 years of age, including work permits, hours restrictions, and prohibited occupations. Employers hiring minors must comply with these specific requirements.
Pennsylvania Worker and Community Right to Know Act
Requires employers to provide information about hazardous substances in the workplace to employees. New hires must receive proper training and information about workplace hazards.
Pennsylvania Unemployment Compensation Law
Requires employers to pay unemployment compensation tax and report new hires to the state within 20 days. This reporting requirement is essential when bringing on new employees.
Form I-9 Employment Eligibility Verification (Federal)
Federal requirement to verify the identity and employment authorization of all employees. Pennsylvania employers must complete Form I-9 for each new employee within 3 business days of hire.
Pennsylvania E-Verify Requirements
Public works contractors and certain state-funded employers must use E-Verify to confirm employment eligibility. While not required for all employers, those with public contracts must comply.
Regional Variances
Major Metropolitan Areas
Philadelphia has its own Fair Practices Ordinance that provides broader employment protections than state law, including protections based on sexual orientation, gender identity, and domestic/sexual violence victim status. Employers in Philadelphia must also comply with the city's Ban the Box ordinance, which restricts when criminal history can be considered in the hiring process. Additionally, Philadelphia has a Wage Equity Ordinance that prohibits employers from asking about salary history.
Pittsburgh has its own Human Relations Ordinance with additional protected classes beyond state law. The city also has a Paid Sick Days Act requiring employers with 15 or more employees to provide paid sick leave. Pittsburgh employers must also follow the city's Ban the Box ordinance, which limits inquiries into criminal history until after a conditional job offer.
Suburban Counties
Montgomery County has its own Human Relations Commission and ordinance that may provide additional protections beyond state law. Employers in this county should verify local requirements for posting notices and compliance with county-specific regulations.
Allegheny County (which includes Pittsburgh) has a Human Relations Commission that enforces anti-discrimination protections that may exceed state requirements. The county has specific regulations regarding employment practices that employers should review when hiring.
Special Economic Zones
Businesses operating in designated Keystone Opportunity Zones (KOZs) throughout Pennsylvania may qualify for special tax incentives when hiring local residents. These zones exist in various municipalities across the state and may have specific hiring requirements or incentives to promote local employment.
As the state capital, Harrisburg has specific ordinances related to employment, including its own Human Relations Ordinance. Employers in Harrisburg should be aware of local requirements that may differ from state law, particularly regarding protected classes and hiring procedures.
Suggested Compliance Checklist
Send the new-hire data to the Pennsylvania child-support agency portal; the.
On hire days after starting(23 Pa.C.S. § 4392(d)).
Register as an employer with the state UI tax agency
Before first payroll days after startingPennsylvania's registration portal is
Complete federal Form I-9 for each new hire within 3 business days of the first day of work, regardless of state
Before first hire days after startingRetain the form for the longer of 3 years after hire or 1 year after termination per 8 CFR section 274a.2.
Check the Pennsylvania E-Verify statute on public and private employer use
On hire days after startingAll employers in the construction industry in Pennsylvania will be required to use E-Verify.
Set up income-tax withholding paperwork
On hire days after startingFederal Form W-4 covers federal withholding; the Pennsylvania state-tax addendum covers state withholding where Pennsylvania runs a separate income-tax regime.
Verify whether the Pennsylvania workers'-compensation statute applies to this headcount
Before hire days after startingat least one employee
Order the mandatory workplace posters
Before first hire days after startingThe Pennsylvania-specific set is: Veterans' Benefits and Services; Abstract of the Pennsylvania Child Labor Act; Abstract of Equal Pay Law; Equal Opportunity & Fair Practices Notices; Hours of Work for Minors Under 18; Minimum Wage Law Poster and Fact Sheet; PA Clean Indoor Air Act Signage for No Smoking; Pennsylvania Right to Know Law; Unemployment Compensation; Workers' Compensation Insurance Posting
Document the at-will employment posture in the offer letter and any employee handbook
Before hire days after startingIn Pennsylvania: In Pennsylvania (like a number of other states), workers will generally be considered to be “at will” employees unless they have an employment contract or statutory right that provides otherwise. An employer may terminate the services of an “at will” employee, with or without cause, at any time — as long as an employee is not let go for an unlawful purpose, such as age or racial discrimination.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Send the new-hire data to the Pennsylvania child-support agency portal; the. | (23 Pa.C.S. § 4392(d)). | - | On hire |
| Register as an employer with the state UI tax agency | Pennsylvania's registration portal is | - | Before first payroll |
| Complete federal Form I-9 for each new hire within 3 business days of the first day of work, regardless of state | Retain the form for the longer of 3 years after hire or 1 year after termination per 8 CFR section 274a.2. | - | Before first hire |
| Check the Pennsylvania E-Verify statute on public and private employer use | All employers in the construction industry in Pennsylvania will be required to use E-Verify. | - | On hire |
| Set up income-tax withholding paperwork | Federal Form W-4 covers federal withholding; the Pennsylvania state-tax addendum covers state withholding where Pennsylvania runs a separate income-tax regime. | - | On hire |
| Verify whether the Pennsylvania workers'-compensation statute applies to this headcount | at least one employee | - | Before hire |
| Order the mandatory workplace posters | The Pennsylvania-specific set is: Veterans' Benefits and Services; Abstract of the Pennsylvania Child Labor Act; Abstract of Equal Pay Law; Equal Opportunity & Fair Practices Notices; Hours of Work for Minors Under 18; Minimum Wage Law Poster and Fact Sheet; PA Clean Indoor Air Act Signage for No Smoking; Pennsylvania Right to Know Law; Unemployment Compensation; Workers' Compensation Insurance Posting | - | Before first hire |
| Document the at-will employment posture in the offer letter and any employee handbook | In Pennsylvania: In Pennsylvania (like a number of other states), workers will generally be considered to be “at will” employees unless they have an employment contract or statutory right that provides otherwise. An employer may terminate the services of an “at will” employee, with or without cause, at any time — as long as an employee is not let go for an unlawful purpose, such as age or racial discrimination. | employment-offer-letter | Before hire |
Frequently Asked Questions
Pennsylvania requires the new-hire report to be filed Employers must report all newly hired or rehired employees within 20 days of the hire date. (23 Pa.C.S. § 4392(d)). The federal anchor for the report itself is the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996.
In Pennsylvania, the E-Verify posture for private employers is: All employers in the construction industry in Pennsylvania will be required to use E-Verify. Federal contractors with a FAR E-Verify clause must still use E-Verify regardless of state law.
$7.25 per hour (federal floor under PA Minimum Wage Act, no state rate above federal); tipped minimum cash wage $2.83
Other Pennsylvania guides
Setting Up a Business Partnership in Pennsylvania (2026)
Small Business Loan Guide for Pennsylvania (2026)
Setting Up a Manufacturing Relationship in Pennsylvania (2026)
Landlord Rules in Pennsylvania: Renting Out Property (2026)
How to File a Small Claims Lawsuit in Pennsylvania (2026)
How to Dispute a Bill in Pennsylvania (2026)
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