What is the penalty for not paying employees the minimum wage?

In Pennsylvania, an employer who does not pay their employees the minimum wage is subject to an array of penalties. The most common of these is a financial penalty, which is imposed by the Pennsylvania Department of Labor and Industry (DLI). The DLI is in charge of enforcing the state’s Minimum Wage Law. If employers are found to be not paying the minimum wage, they will be required to pay back wages to the affected employees, and will be fined the highest amount between $500 and $2,000 per violation. Also, the DLI may assess a penalty of $100 to each employee affected by the violation. This penalty is meant to compensate the employee for any damages they incurred as a result of not being properly paid. Finally, all unpaid wages may be subject to interest and a civil penalty of up to 25% of the amount of unpaid wages. This civil penalty is imposed in order to punish employers who willfully or repeatedly violate the Minimum Wage Law. In addition to the financial penalties, employers who fail to pay minimum wage could also face criminal charges, with potential fines and jail time. As a result, it is in the best interest of employers to ensure that their employees are receiving all wages legally due to them.

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What is the penalty for not paying employees the minimum wage?

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