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On Thursday, October 27th Philadelphia Mayor Jim Kenney signed into law legislation that expands the scope of the city’s prevailing wage ordinance to encompass service employees at universities, hospitals and other businesses that receive government funds. The legislations, which was unanimously approved by the Philadelphia City Council, goes into effect immediately. Philadelphia’s prevailing wage ordinance was first passed in the 1950s, but in recent years has been expanded to cover more workers in the city. In substance, the ordinance requires employers to pay employees in the city covered by the ordinance a prevailing wage which, as the city explains, “is a rate of pay determined by the U.S. Department of Labor based upon the particular geographic area for a given class of labor and type of project.” A prevailing wage, as defined by the law, is typically higher than the wages that an employer would otherwise pay and, in some instances, is tied to wage rates negotiated by unions. Both before and after the expansion of the ordinance was signed into law, Mayor Kenney and members of City Council issued statements making it clear that the change to the ordinance was intended to raise the wages for thousands of people working in Philadelphia.

On July 1, 2016, the City of Philadelphia’s new Wage Theft Ordinance went into effect. In substance, the Ordinance provides employees who fall within the scope of the Ordinance another means for seeking to recover unpaid wages (i.e., “wage theft” under the Ordinance), it creates the position of wage theft coordinator in Philadelphia, and it imposes new compliance obligations on employers who are subject to the Ordinance.

On Tuesday (April 14, 2015), the Pennsylvania Senate approved a bill that would invalidate Philadelphia's new mandatory paid sick-leave ordinance, which is scheduled to go into effect on May 13, 2015. Mayor Nutter finally signed the Philly ordinance on February 12, 2015, after vetoing similar legislation in 2011 and 2013. Sen. John Eichelberger (R., Blair), who sponsored the state bill, called Philadelphia's sick-leave law "a mistake."

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