On May 27, 2025, Mayor Cherelle Parker signed the Protect Our Workers, Enforce Rights (“POWER”) Act into law, which expands the Philadelphia Department of Labor’s enforcement options for violations of the City’s expanding roster of worker protection laws. Under this new ordinance, which is now in effect, workers in Philadelphia have expanded protection against labor infractions; and employers face a host of new and enhanced compliance requirements.
Key provisions of the new legislation include:
- Expanded Definitions and Coverage. The ordinance broadens the definitions of “employee,” “employer,” and “domestic worker,” ensuring coverage for a wider range of workers, including part-time, temporary, and live-in domestic workers.
- Paid Sick Leave and Leave Accrual. The legislation specifies that employees, including domestic workers, accrue paid sick time, compensated at their regular rate of pay, with specific calculation methods for tipped employees. Employers are prohibited from counting sick time as an absence leading to discipline and must provide notice of rights in multiple languages. Employers must also maintain contemporaneous records of hours worked, sick time taken, and payments for at least three years.
- Wage Theft Protections. The ordinance expands the definition of wage theft to include violations of state and federal wage laws where work is performed in Philadelphia, or the employment contract is made in the City. The Department of Labor will be authorized to investigate complaints, with a three-year statute of limitations for filing. Employers failing to maintain required payroll records face an affirmative presumption that they have violated the Act.
- Domestic Worker Protection. Employers must provide written contracts to domestic workers (excluding casual work), detailing job duties, wages, schedules, leave, benefits, and termination terms, in English and in the worker’s preferred language. Domestic workers are entitled to paid rest periods and meal breaks and will accrue paid leave, with a centralized portable benefits system to be developed for aggregation across multiple employers. Employers must also provide minimum notice periods (two weeks for most, four weeks for live-in workers) for termination without cause, with severance pay and, for live-in workers, continued housing or its value if notice is not provided.
- Anti-Retaliation Protections. The ordinance prohibits retaliation against workers for exercising rights under any worker protection ordinance, including filing complaints, seeking information, or participating in investigations. It also places a rebuttable presumption of unlawful retaliation on any employer who discharges, suspends, or takes other adverse action against an employee within 90 days of the employee engaging in protected conduct.
- Expanded Enforcement and Private Right of Action. The Department of Labor will be empowered to investigate, mediate, and adjudicate complaints, with authority to issue subpoenas and expand investigations to cover pattern or practice violations. Workers may also bring private civil actions without first exhausting administrative remedies, subject to a 15-day notice and cure period. Prevailing workers are entitled to legal and equitable relief, including attorney’s fees and costs.
- Notice, Posting, and Outreach Requirements. Employers must provide written notice of rights to employees in relevant languages or post notices conspicuously. Failure to provide notice tolls the statute of limitations for any claims and may subject an employer to a civil penalty of up to $2,000 per violation.
- Public Reporting. Employers with repeated or unresolved violations may be listed in a public “Bad Actors Database,” face license revocation, and be deemed ineligible for City contracts.
The POWER Act significantly enhances protections for many workers in Philadelphia. Employers and hiring entities must review and update their policies, contracts, and recordkeeping practices to ensure compliance. The expanded enforcement powers, increased penalties, and public reporting mechanisms underscore the City’s intention to take stronger action to enforce its growing list of worker protection laws and hold noncompliant employers accountable.