ARTICLE
30 June 2025

New Philadelphia Ordinance Aims To EmPOWER Employees

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On May 27, 2025, Philadelphia Mayor Cherelle Parker signed the Protect Our Workers, Enforce Rights Act (POWER Act). The ordinance, found here, aims to enhance protections...
United States Pennsylvania Employment and HR

On May 27, 2025, Philadelphia Mayor Cherelle Parker signed the Protect Our Workers, Enforce Rights Act (POWER Act). The ordinance, found here, aims to enhance protections related to paid sick leave, wage theft, and domestic worker rights. The POWER Act also provides for anti-retaliation protections, and it authorizes the Office of Work Protection (OWP) to investigate and enforce all provisions. Mayor Parker describes the POWER Act as a form of intergovernmental collaboration among her Administration, City Council, and labor leaders.

Paid Sick Leave

The POWER Act makes two significant changes to Philadelphia's paid sick leave ordinance. First, the POWER Act now requires employers to provide paid sick leave to probationary employees pursuant to the terms of a collective bargaining agreement (CBA). Previously, employers did not have to provide paid sick leave to employees who are covered by a CBA. Now, employers may only exclude CBA-covered employees who are no longer on probation.

Second, the POWER Act amends the calculation for determining a tipped worker's regular rate for paid sick leave purposes. Previously, employers paid tipped employees for sick leave at either their normal hourly rate or the minimum wage. Now, the POWER Act prescribes a formula, based on the average wage rate for "Bartenders," "Waiters & Waitresses," and "Dining Room & Cafeteria Attendants & Bartender Helpers," as published by the Pennsylvania Department of Labor and Industry for Philadelphia County.

Wage Theft

As for wage theft protections, the POWER Act expands the definition of "employee" to include individuals who believe they are mischaracterized. This means that independent contractors may file a wage theft complaint if they believe they are actually employees.

Domestic Worker Rights

Under the POWER Act, domestic workers are now assured to earn paid sick leave pursuant to Philadelphia's paid sick leave ordinance. This means that that live-in domestic workers must receive paid sick leave and are protected from retaliation, wage theft, and coercion. Domestic workers are also now entitled to meal breaks. The POWER Act further requires written contracts between domestic workers and their employers, which should outline leave time, meal breaks, and employee protections.

What Employers Should Know

Perhaps the most important aspect of the POWER Act is the additional teeth and enforcement rights it provides to the OWP. The POWER Act grants to the OWP the ability to conduct investigations, even where a formal complaint has not been filed. The ordinance also permits the City to impose increased fines (up to $2,000) and suspend or revoke business licenses and City contracts. In addition, the POWER Act creates a Bad Actors Database, which will include a listing of businesses that have incurred three or more infractions.

Employers should also be aware of the POWER Act's strong anti-retaliation provisions. Under the Act, there is now a rebuttable presumption of unlawful retaliation if an employer takes any adverse action within 90 days of an employee engaging in activity protected under the POWER (e.g., filing a complaint or assisting the OWP in an investigation). An employer may overcome this presumption only if it can provide clear and convincing evidence that they would have taken the adverse action notwithstanding the activity, provided there is actual documentation, in writing, of the incident relating to the alleged adverse action.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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