Hiring Server in Philadelphia: Local Wage Laws and Hiring Checklist

Hiring Server in Philadelphia: Local Wage Laws and Hiring Checklist - Key Takeaways

Minimum wage in Philadelphia and Pennsylvania remains $7.25/hour as of August 2025, matching the federal rate.
Employers may pay tipped servers a base wage of $2.13/hour if tips make up the difference to minimum wage; tip pooling rules exclude managers and supervisors.
Hiring servers requires compliance with federal, Pennsylvania state, and Philadelphia city hiring protocols including specific tax forms and labor law acknowledgments.

When hiring servers in Philadelphia, understanding local wage laws and following a detailed hiring checklist is critical to compliance and fair labor practices.

This guide outlines essential wage guidelines and step-by-step hiring procedures specific to Philadelphia employers.

1. Understanding Philadelphia Local Wage Laws for Servers

Philadelphia adheres to Pennsylvania's minimum wage of $7.25 per hour, which is also the federal minimum wage as of August 2025. This rate applies to non-tipped employees as a baseline for server wages.

For tipped employees such as servers, employers may legally pay a cash wage of $2.13 per hour. However, this is only permissible if the employee’s tips plus the cash wage total at least $7.25 per hour. Should tips fall short, employers must compensate the difference.

Tip Pooling and 80/20 Rule in Philadelphia

Philadelphia allows tip pooling only among employees who customarily receive tips—this includes servers, bussers, and bartenders but excludes managers and supervisors from participating in the pool. Managers can contribute their own tips but cannot take from pooled tips.

For role clarity, review the busser job description.

The 80/20 rule restricts tipped employees from spending more than 20% of their weekly work hours performing duties that do not generate tips to ensure fair wage treatment.

To define front-of-house duties, see the server job description.

2. Federal and Pennsylvania State Requirements When Hiring Servers in Philadelphia

Employers must comply with a series of federal and state forms and notifications when bringing a new server on board.

Federal Forms: Complete Form I-9 to verify the employee’s identity and eligibility to work and Form W-4 for federal tax withholding.
Pennsylvania State Forms: Collect the PA-W4 for state income tax withholding and the Local Earned Income Tax Residency Certification to document where the employee lives for local taxation.
New hires should be reported using the Pennsylvania New Hire Reporting Form within 20 days of beginning employment.
Provide employees with the UC-2B Form detailing unemployment compensation information.
Notify employees about their workers’ compensation rights and responsibilities under Pennsylvania law.

When evaluating candidates, prepare with server interview questions.

3. Philadelphia-Specific Hiring Checklist for Servers

Philadelphia has enacted several ordinances and requirements that employers must follow beyond federal and state laws.

Withhold and document the Philadelphia Wage Tax: 3.8398% for residents and 3.4481% for non-residents (as of 2023).
Provide an acknowledgment for the Fair Workweek Ordinance if applicable, informing employees of scheduling rights.
Inform new hires about their rights related to Paid Sick Leave under Philadelphia’s ordinance.
Comply with Fair Chance Hiring regulations which limit background checks on applicants.
Confirm adherence to Salary History Ban policies by acknowledging salary history was not requested during hiring.

4. Best Practices for Compliance When Hiring Servers in Philadelphia

Ensure the hiring process is organized and compliant by maintaining thorough documentation and clear communication.

Use a checklist to track completion of all forms and notifications, including tax documents and employee rights acknowledgments.

Leverage a server training manual to standardize onboarding and compliance training.

Regularly review wage calculations to confirm tipped employees receive at least the minimum wage when combining tips and base pay.

Clearly communicate tip pooling guidelines to workers, specifying eligible participants and restrictions on managerial involvement.

Train managers and HR personnel comprehensively on Philadelphia’s local ordinances as well as federal and state employment laws.

5. Additional Resources for Philadelphia Employers Hiring Servers

Employers seeking further guidance can utilize the following official resources:

For onboarding and service standards, learn how to train restaurant servers.

Hiring Server in Philadelphia: Local Wage Laws and Hiring Checklist - Conclusion

Employers in Philadelphia hiring servers must navigate a complex patchwork of federal, state, and local wage laws and hiring regulations.

By understanding the minimum wage and tip credit rules, adhering to tip pooling restrictions, and completing the required federal, Pennsylvania state, and Philadelphia city hiring documentation, employers ensure compliance and foster a fair labor environment.

Following the outlined checklist and best practices not only protects the business legally but also supports a transparent and respectful workplace for servers.

If your concept includes alcohol service, review the cocktail server role to align responsibilities and training.

01. What is the minimum wage for servers in Philadelphia?

As of August 2025, Philadelphia maintains a minimum wage of $7.25 per hour, aligning with Pennsylvania state and federal laws.

02. Can managers participate in tip pooling in Philadelphia?

No. Managers and supervisors are excluded from participating in tip pooling, although they may contribute their own tips without taking from the pool.

03. What forms are required when hiring servers in Philadelphia?

Employers must collect federal forms such as Form I-9 and Form W-4, Pennsylvania state forms like PA-W4, and local tax documentation to comply with hiring regulations.

04. What is the 80/20 rule for tipped employees in Philadelphia?

This rule limits tipped employees from performing non-tip-generating duties to more than 20% of their total weekly work hours to ensure proper tip wage calculations.

05. What are some best practices for compliance when hiring servers?

Maintain thorough documentation, communicate tip pooling guidelines clearly, train HR and managers on local laws, and regularly review wage calculations to stay compliant.