Recently, the U.S. District Court for the Eastern District of Pennsylvania in O’Donnell v. Passport Health Communications, 2013 U.S. Dist. LEXIS 51432 (E.D. Pa. Apr. 10, 2013), provided a not-so-gentle reminder to employers of the potential pitfalls of Pennsylvania’s Wage Payment and Collection Law (WPCL).
The WPCL is conceptually different from the Fair Labor Standards Act, and its Pennsylvania counterpart, the Pennsylvania Minimum Wage Act, because it does not create a substantive right to compensation. Rather, it provides employees with a statutory vehicle to assert contract-based rights, while simultaneously providing additional remedies (such as liquidated damages and attorney fees) to employees seeking to enforce those rights. The WPCL defines wages broadly in 43 P.S. § 260.2.1 to include "all earnings of an employee" and "fringe benefits or wage supplements."
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