Hiring New Employees in Pennsylvania: A Legal Guide

Develop a clear job description that outlines the position's responsibilities, required qualifications, and essential functions. Ensure the description complies with Pennsylvania employment laws and does not contain discriminatory language. This will help you attract qualified candidates and serve as documentation for the position requirements.

Advertise the position through appropriate channels and collect Employment Application Forms from candidates. Pennsylvania is an at-will employment state, but your application process must comply with anti-discrimination laws including the Pennsylvania Human Relations Act, which prohibits discrimination based on race, color, religious creed, ancestry, age (40+), sex, national origin, disability, or use of a guide animal.

Create an application form that collects necessary information while complying with Pennsylvania laws. Avoid questions about age, race, religion, disability, or other protected characteristics. Include an at-will employment disclaimer and authorization to verify information provided. Pennsylvania law prohibits employers from asking about criminal history on initial job applications (Ban the Box in Philadelphia and Pittsburgh).

Interview qualified candidates and select the best fit for the position. Ensure all interview questions comply with anti-discrimination laws. Document the selection process and reasons for hiring decisions to protect against potential discrimination claims.

Obtain a signed Background Check Authorization Form before conducting any background checks. In Pennsylvania, employers must comply with the Fair Credit Reporting Act (FCRA) for background checks. For certain positions (like those working with children, elderly, or in healthcare), additional background checks may be required under Pennsylvania law.

Create a form that complies with the FCRA and Pennsylvania law, clearly explaining the types of background checks to be conducted and obtaining the candidate's consent. The form should be separate from the employment application and include a clear disclosure that a consumer report may be obtained for employment purposes.

Prepare a formal offer letter outlining the position, compensation, benefits, start date, and at-will employment status. In Pennsylvania, offer letters should clearly state that employment is at-will unless you intend to create a contract for a specific term. Be careful not to include language that could be interpreted as promising continued employment.

If offering a contract rather than at-will employment, draft an Employment Contract that clearly outlines terms, duration, compensation, benefits, termination conditions, and any restrictive covenants. In Pennsylvania, employment contracts must include consideration for any restrictive covenants to be enforceable. For new hires, the job itself can serve as consideration.

Prepare an NDA to protect your company's confidential information. In Pennsylvania, NDAs must be reasonable in scope, duration, and geographic area to be enforceable. The agreement should clearly define what constitutes confidential information and the employee's obligations regarding that information.

If necessary for your business, prepare a Non-Compete Agreement. In Pennsylvania, non-compete agreements must be: (1) ancillary to employment, (2) supported by adequate consideration, (3) reasonably limited in time and geographic scope, and (4) protect a legitimate business interest. For new employees, the job offer itself can serve as consideration.

Create an Employee Handbook that outlines company policies, procedures, and expectations. Include policies on anti-discrimination, anti-harassment, leave policies, benefits, discipline, and termination. Pennsylvania-specific policies should address the state's requirements for breaks, leave, and final paychecks. Have employees acknowledge receipt of the handbook.

Federal law requires completion of Form I-9 to verify employment eligibility. The employee must complete Section 1 by their first day of work, and you must complete Section 2 within 3 business days of the employee's start date. Examine original documents that establish identity and employment authorization. Pennsylvania employers must also use E-Verify if they are state contractors or receive certain state funding.

Have the employee complete a federal W-4 form to determine federal income tax withholding. This is required by federal law for all new employees. Keep the completed form in the employee's file.

Have the employee complete Pennsylvania state tax withholding forms (PA-W4). Pennsylvania has a flat income tax rate, but local earned income taxes also apply based on where the employee lives and works. Employers must withhold the correct local tax rate, which varies by municipality.

Provide a Direct Deposit Authorization Form if offering direct deposit. In Pennsylvania, employers cannot require direct deposit unless they provide an alternative payment method. The form should collect the employee's banking information and authorization for electronic deposits.

Create a form to collect emergency contact information. While not legally required in Pennsylvania, this is a best practice for employee safety. The form should collect names, relationships, and contact information for individuals to notify in case of emergency.

Report new hires to the Pennsylvania New Hire Reporting Program within 20 days of hire. This is required by federal and state law to help enforce child support obligations. Report through the Commonwealth of Pennsylvania's New Hire Reporting website or by submitting a copy of the employee's W-4 with employer information added.

Provide Benefits Enrollment Forms for health insurance, retirement plans, and other benefits. In Pennsylvania, employers must provide information about available benefits and enrollment deadlines. For health insurance, provide COBRA notices if applicable (for employers with 20+ employees).

Create forms for employees to select and enroll in available benefits programs. Include clear information about eligibility requirements, coverage options, costs, and enrollment deadlines. For health insurance, include required notices under the Affordable Care Act.

Post all required federal and Pennsylvania-specific workplace notices in a conspicuous location. Pennsylvania requires posters regarding minimum wage, workers' compensation, unemployment compensation, and the Pennsylvania Human Relations Act. Federal posters include FLSA, FMLA (if applicable), OSHA, and Equal Employment Opportunity.

Ensure your business is registered with the Pennsylvania Department of Labor & Industry for unemployment compensation tax. All Pennsylvania employers must pay unemployment compensation tax on employee wages.

Secure workers' compensation insurance coverage for the new employee. In Pennsylvania, nearly all employers are required to provide workers' compensation coverage for employees, with very few exceptions. Coverage can be obtained through a private insurance carrier, the State Workers' Insurance Fund, or self-insurance (if qualified).

Schedule and conduct an orientation session to review company policies, procedures, and expectations. Cover the Employee Handbook, safety procedures, and any job-specific training. Document the orientation to demonstrate compliance with training requirements.