What happened?

On May 27, 2025, Philadelphia Mayor Cherelle L. Parker signed the Protect Our Workers, Enforce Rights (POWER) Act into law. The Act, which took effect immediately, expands worker protections, strengthens enforcement, and increases employer responsibilities under the Philadelphia Code.

Overview:

POWER Act Summary:

• Paid Sick Leave (Chapter 9-4100)
  • CBA-covered employees: Must receive paid sick leave during probation.
  • Tipped employees: Sick pay must be calculated using a standardized average wage formula based on state data.
  • Recordkeeping: Maintain records of hours worked and sick leave taken/paid for three years.
  • Notice: Employers are required to provide new hires with the paid or unpaid sick leave notice, as well as posting it in a place where employees frequent, posted on the company’s intranet for remote employees (unless emailed directly), and finally, the information must be included in the employee handbook (Notice to Employees/Posting).
  • Enforcement: $2,000 per violation; liquidated damages equal to actual damages; 3-year statute of limitations; 15-day notice required before lawsuits (unless willful misconduct or retaliation).

• Wage Theft Protections (Chapter 9-4300)
  • Expanded definition of “employee”: Includes those covered by state and federal wage laws.
  • Complaint procedures: 3-year statute of limitations; failure to maintain records creates a presumption of wage theft.
  • Retaliation: Prohibited and governed by Chapter 9-6500.
  • Private lawsuits: Allowed after 15-day notice; attorney’s fees recoverable.
  • Penalties: $2,000 per violation; liquidated damages equal to unpaid wages or $500, whichever is greater.

• Domestic Worker Protections (Chapter 9-4500)
  • Written contracts: Required on or before the first day of work; must include job duties, pay, schedule, leave, and termination terms.
  • Meal and rest breaks: 10-minute paid rest every 4 hours; 30-minute unpaid meal after 5 hours; “on-duty” breaks allowed only with written agreement.
  • Live-in workers: Entitled to 24-hour rest after 6 consecutive workdays.
  • Paid leave: Must be provided even before a centralized benefits system is implemented.
  • Termination: 2-week notice (4 weeks for live-in workers); severance pay required if notice is not given.
  • Recordkeeping: Maintain contracts, hours, pay, leave, terminations, and discipline records for 3 years.
  • Penalties: $2,000 per violation; presumed damages for missing contracts, missed breaks, improper termination, and failure to notify of rights.

• Retaliation Protections (Chapter 9-6500)
  • Presumption of retaliation: Applies if adverse action occurs within 90 days of protected activity.
  • Expanded coverage: Includes actions by anyone associated with the employer.
  • Enforcement: $2,000 per violation; liquidated damages for emotional, physical, or financial harm.
  • Private lawsuits: Allowed after 15-day notice; 3-year statute of limitations.
  • Worker Justice Fund: Created to support workers harmed by retaliation; funded by collected penalties.

• Enforcement & Oversight (Chapter 9-6600)
  
  • Office of Worker Protections (OWP):
    
    • Can investigate without a complaint.
    • May expand investigations to all workers at a business.
    • Has subpoena power.
      
  • Determinations: OWP can require employers to post public notices of violations.
    
  • Notice requirements: Employers must provide written notice of rights and post notices in multiple languages.
    
  • Annual reporting: OWP must report on complaints, violations, penalties, and enforcement actions.
    
  • Bad Actors Database: Public list of employers with 3+ violations or noncompliance.
    
  • License and contract revocation: Employers on the database may lose business licenses and be barred from City contracts.

Source References

• Philadelphia File # 250065 – POWER Act
• Philadelphia Mayor Press Release – POWER Act
• Philadelphia Council Press Release – POWER Act

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