Philadelphia Moves Toward Aggressive POWER Act Enforcement

On April 15, 2026, Philadelphia’s Office of Worker Protections published proposed regulations implementing the Protect Our Workers, Enforce Rights (POWER) Act.

The regulations clarify enforcement procedures, employer obligations, and penalties, signaling a shift from a more passive phase to active enforcement.

This update applies to employers operating in Philadelphia and reflects a change in enforcement posture, not a new law.

What Employers Need to Do

• Review wage, paid sick leave, and retaliation practices to ensure current policies and day-to-day operations align with Philadelphia’s worker-protection requirements.

• Maintain complete and consistent records for hours worked, sick leave accrual and use, and payroll practices for at least three years.

• Train managers and HR personnel on retaliation risk, especially the 90-day presumption framework and the need for clear documentation supporting adverse actions.

• Prepare for audits and investigations by ensuring records can be produced promptly and that internal teams are ready to respond to agency inquiries.

• Confirm that required Philadelphia notices and postings are current and properly distributed to employees.

Overview

Philadelphia is moving toward active enforcement of the POWER Act, with proposed regulations clarifying how the law will be applied. The regulations do not create new rights but establish investigation procedures, penalties, and enforcement mechanisms.

Background: The POWER Act

• Philadelphia enacted the POWER Act in May 2025 as a broad worker-protection law.
• The law expanded existing ordinances covering paid sick leave, wage theft, and domestic worker protections, while adding new enforcement and anti-retaliation frameworks.
• It applies to all employers operating within Philadelphia and significantly increases compliance and enforcement risk.

Expanded Enforcement Authority

• The Office of Worker Protections may initiate investigations without a formal complaint.
• The agency may broaden investigations and compel records and testimony.
• Employers should expect a shift toward proactive, audit-driven oversight rather than compliance-based enforcement.

Retaliation Framework

• The law creates a rebuttable presumption of retaliation if adverse action occurs within 90 days of protected activity.
• Employers must show a legitimate, non-retaliatory reason with strong supporting evidence.
• Protected activity includes complaints, sick leave use, participation in investigations, and opposition to violations.

Penalties and Public Exposure

• Civil penalties may reach up to $2,000 per violation, along with potential liquidated damages.
• The City may maintain a public “Bad Actors Database” identifying noncompliant employers.
• Repeated violations may result in loss of business licenses or City contracts.

Recordkeeping and Documentation

• Employers must maintain records for at least three years, including hours worked and sick leave usage.
• Missing or incomplete records may result in a presumption of noncompliance, shifting the burden to the employer.
• Accurate, contemporaneous documentation is now a critical compliance defense.

Why This Matters

This development matters because it signals a transition from statutory compliance to active enforcement, with the City now equipped to proactively investigate and penalize violations.

For employers, the biggest impact is operational: policies, documentation, and day-to-day management decisions must align with Philadelphia’s worker-protection rules, especially given the heightened retaliation standards and audit risk.

Key Risks for Employers

• Proactive investigations without employee complaints, increasing exposure even when no worker has filed a formal complaint.

• Retaliation claims within the 90-day presumption period, where employers may face a more difficult defense burden.

• Financial and reputational exposure, including civil penalties, liquidated damages, and listing in the “Bad Actors Database.”

• Recordkeeping-related compliance failures, especially where records are incomplete, inconsistent, or unavailable during an investigation.

• Operational consequences for repeat or serious violations, including possible license suspension or loss of City contracts.

Additional Information

The regulations were subject to a 30-day public review period, which has now closed. Final rules may be issued soon, and employers should use this time to assess compliance gaps and prepare for enforcement.

Employers should also expect increased audits, broader investigations, and heightened scrutiny across covered worker-protection laws.

Source References

• City of Philadelphia – Press Release (April 15, 2026)
• City of Philadelphia – Proposed City Regulations

Resources

• City of Philadelphia – POWER Act Page Resource
• City of Philadelphia – Worker protection resources – English

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