This is an important update for all managers and business owners in Philadelphia about the paid sick leave rate for tipped workers.

Employers with 10 or more employees must pay tipped workers $17.88 per hour of paid sick time. This rate is in effect from July 1, 2026 through June 30, 2027. The Office of Worker Protections sets this rate using wage data for tipped workers in Philadelphia County.

A tipped employee is someone who “customarily and regularly received more than $50 a month in tips.” This includes bartenders, waiters, waitresses, dining room and cafeteria attendants, and other similar jobs.

Philly’s sick leave law

All employers in Philadelphia must provide sick leave and keep records of how sick time is earned and used for three years.

Employers with 10 or more employees are required to provide paid sick leave. Employers with nine or fewer employees are required to provide unpaid sick leave.

Employees earn at least one hour of sick time for every 40 hours worked, up to 40 hours of sick time in one calendar year.

Some workers are not covered by this law. These include:

• Seasonal workers and employees hired for less than six months
• Adjunct professors, pool employees, and interns
• Non-probationary employees covered by a collective bargaining agreement
• State and federal employees
• Independent contractors

If you need help, employers can contact the Office of Worker Protections for a sample sick leave tracking sheet and a sample sick leave policy.