The Philadelphia POWER Act: A Higher Bar for Employee Protection
Philadelphia employees are now able to enjoy strengthened protections against employer retaliation. The “Protect Our Workers, Enforce Rights Act” (“POWER”), passed by Philadelphia City Council and signed by Mayor Cherelle Parker on May 27, 2025, introduced significant changes to the Philadelphia Code.
How the POWER Act Changes Philadelphia Labor Laws
The POWER Act significantly broadens the scope of worker protections and enforcement mechanisms available in the city. Employees now benefit from the expanded interpretation of what is termed “protected activity”. The new POWER Act prohibits retaliation against employees who seek to assert their rights under any “Worker Protection Ordinance,” which is broadly defined to include ordinances concerning wage theft, fair workweek standards, and protections for domestic workers. This includes actions such as discussing rights with another person, objecting to or refusing to participate in conduct that violates any ordinance, or filing a complaint against an employer with an agency or court. The POWER Act also explicitly prohibits an employer from retaliating against an employee who is out on sick leave under the Philadelphia Sick Leave Law.
Additional advantages include strengthened litigation and enforcement regarding whistleblower activities. The POWER Act grants the city’s Office of Worker Protections (OWP) the authority to seek penalties of $2,000 for each violation. The city can now suspend or revoke business licenses and procurement contracts of employers who commit repeated violations against their employees. Moreover, the Act requires the creation of a public “bad actors database” for employers with three or more violations.
The POWER Act creates a “private right of action”, allowing employees to sue their employer directly for damages without needing to resort to administrative remedies. The statute of limitations for bringing a claim under the POWER Act is three years, which is significantly longer than most federal statutes. For instances of retaliation, the requirement to give the employer 15 days to cure the alleged infraction is waived, meaning that a lawsuit can be filed immediately. In addition, the act requires employers to keep records of hours worked, sick time, and payments for three years rather than two years, aligning with the new statute of limitations.
A New Standard: The Presumption of Retaliation
Perhaps the most substantial change introduced by the POWER Act is the establishment of a new standard regarding the rebuttable presumption of retaliation. When an employer takes an adverse employment action (such as firing, suspending, demoting, or other such actions), a presumption arises for the 90 days following an employee engaging in a protected activity. Under federal statutes and other laws, a 90-day window typically creates an inference of retaliation, which the employer can rebut by showing legitimate, non-retaliatory reasons through a preponderance of the evidence standard. However, under the POWER Act, the standard for the employer is considerably higher. The employer now must show the non-retaliatory reasons by way of “clear and convincing” evidence. This is a significantly higher bar. Employers must be mindful of this heightened standard when determining their course of action in order to avoid adverse decisions against employees.
Philadelphia Business and Employment Lawyers at Sidkoff, Pincus & Green P.C. Can Help You
Whether you are an employee considering reporting perceived wrongdoing or an employer reviewing compliance and required employee notice, it is crucial to understand this new act. Speak with the Philadelphia business and employment lawyers at Sidkoff, Pincus & Green P.C. about how we can help you. Contact us online or at 215-574-0600 for a consultation. Located in Philadelphia, we proudly serve clients in Pennsylvania and New Jersey.







