Hiring employees in Pennsylvania: the 2026 compliance checklist for employers and recruiters

As of October 2026, an employer hiring in Pennsylvania has to register through the Department of Revenue's myPATH system for state withholding and an unemployment compensation account, carry workers' compensation from the first employee, get every party's consent before recording an interview, have each new hire complete the local Residency Certification Form, tell the employee the pay rate, payday and place of payment, and report the hire within 20 days. State law also limits the use of convictions to those related to the job and requires written notice when a record drives a rejection. Philadelphia adds its own rules on criminal records, salary history, credit checks and marijuana testing.

This page is the Pennsylvania hub: one table with every item and its official source, then a short section on each. Where we already have a full guide to an item, the section summarizes it and links there.

The Pennsylvania hiring checklist at a glance

What must be in place before the first Pennsylvania hire?

Registration and insurance. The Department of Labor and Industry's UC Employer's Handbook says that if you have employees or plan to hire in Pennsylvania, "you must register with L&I" through the Department of Revenue's myPATH system, and L&I uses that registration to decide whether you owe unemployment compensation tax and to assign an account number. The Department of Revenue says businesses register for withholding accounts through the same PA Online Business Tax Registration, after getting a federal EIN.

Workers' compensation is not optional: Labor and Industry says coverage "is mandatory for all employers who have one or more employees." Local taxes add a step most out-of-state employers miss: withholding the local earned income tax and Local Services Tax for each worksite, using DCED's employer instructions. The federal layer (an EIN, Form W-4 and Form I-9 by the third business day) applies on top.

Does a staffing or recruiting agency need a Pennsylvania license?

No state license. Pennsylvania repealed its 1941 Employment Agency Law, which had licensed private employment agents, through Act 102 of 2014. Nurse and home care staffing is licensed on its own track, and city rules can still apply. Our guide to Pennsylvania staffing agency rules covers what remains.

What must a Pennsylvania job posting include, and can you ask about pay history?

We found no Pennsylvania statute requiring pay ranges in job postings or banning salary history questions, and the state does not appear in our trackers of pay transparency laws by state. Philadelphia is different: its Wage Equity Ordinance makes it illegal for employers, employment agencies or their agents to ask applicants about current or prior salary, and the city has enforced it since September 1, 2020 after the Third Circuit upheld the inquiry ban. See salary history ban states.

When can you ask about criminal history or run a credit check?

Statewide, 18 Pa.C.S. § 9125 says felony and misdemeanor convictions "may be considered by the employer only to the extent to which they relate to the applicant's suitability for employment in the position," and the employer "shall notify in writing the applicant if the decision not to hire the applicant is based in whole or in part on criminal history record information." In Philadelphia, the Fair Criminal Records Screening Standards Ordinance lets employers run a background check only after a conditional offer and reject only for an unacceptable risk with written notice of the reason, according to the Commission on Human Relations, which says new amendments took effect in January 2026. The federal FCRA process applies on top.

We found no statewide limit on employment credit checks. Philadelphia Code § 9-1130 bars procuring or using credit information in hiring except for listed roles; see our credit check laws guide.

Can you record or transcribe a job interview in Pennsylvania?

Only with everyone's prior consent. 18 Pa.C.S. § 5704(4) makes interception lawful only "where all parties to the communication have given prior consent," covering phone, video and in-person interviews. Unlawful interception is a felony of the third degree, and the person recorded can sue for at least $1,000. See Pennsylvania recording consent law for interviews and our consent script.

Does Pennsylvania regulate AI in hiring?

We found no Pennsylvania statute aimed at AI in hiring as of October 2026, and the state is not in our AI hiring laws by state summary. Any tool that screens or scores candidates is still subject to state and federal anti-discrimination law, and recording or transcribing an interview for an AI tool needs all-party consent, as above. See the EEOC's position on AI in hiring.

Can you drug test applicants in Pennsylvania?

Generally yes, with a medical marijuana limit. Section 2103(b)(1) of the Medical Marijuana Act bars refusing to hire or otherwise discriminating against someone solely because of their status as a certified medical marijuana patient, while not requiring accommodation of use at work. In Philadelphia, the Commission on Human Relations says it is illegal for many jobs to require a marijuana test as a condition of employment, with exceptions where federal or state law requires testing for safety or security, a federal contract or grant requires it, or a collective bargaining agreement covers it. See our drug testing laws guide.

Does Pennsylvania require E-Verify?

Only on public works. Under the Public Works Employment Verification Act as rewritten by Act 141 of 2022, every contractor and subcontractor on a publicly funded construction project over $25,000 must use E-Verify for each new employee, according to the Department of General Services. There is no mandate for private employers outside public works. Details are in E-Verify requirements in Pennsylvania.

Which state withholding form does a new hire complete?

For state income tax, usually none: the Department of Revenue requires employers to withhold personal income tax at a flat 3.07 percent of compensation from residents and nonresidents working in the state, so there are no allowances to claim. Residents of reciprocal states (Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia) file Form REV-419, renewed each year, so the employer withholds correctly. Every new hire also completes DCED's Residency Certification Form, which the form says "must be utilized by employers when a new employee is hired," so the employer withholds the right local earned income tax.

Which notices must a new Pennsylvania employee get at hire?

• Pay terms. Section 4 of the Wage Payment and Collection Law requires every employer "to notify his employes at the time of hiring of the time and place of payment and the rate of pay and the amount of any fringe benefits or wage supplements." An employer may instead post those facts conspicuously at its place of business.
• Local tax form. The Residency Certification Form above, kept in the personnel file.
• Criminal record notice. Only if a rejection rests on criminal history: the written notice under § 9125.

Unlike California and New York, Pennsylvania's statute does not require a signed acknowledgment, but a written offer letter that states pay, payday and benefits covers the duty and creates a record.

How do you report a new hire in Pennsylvania?

The Pennsylvania New Hire Reporting Program says "employers must report their new hires to the Program within twenty (20) days of the Date of Hire," defined as "the first day services are performed for wages." The report needs the employer's legal name, street address, FEIN and contact, and the employee's legal name, street address, Social Security number and date of hire. Employers report through PA CareerLink, which allows up to three employees per session without an account. The program rests on 23 Pa.C.S. §§ 4391–4396 and federal law, and the state's Business One-Stop Shop adds that part-time, seasonal, probationary and rehired employees all count.

The Pennsylvania hiring steps in order

1. Before the first hire: register through myPATH, bind workers' compensation, and look up the local earned income tax and Local Services Tax for each worksite.
2. Posting: no state pay range rule; in Philadelphia, no salary history questions.
3. Screening: consider only job-related convictions; in Philadelphia, no background check before a conditional offer and no credit check unless the role is exempt.
4. Interview: get every party's consent before recording or transcribing.
5. Offer: send written notice if criminal history drives a rejection; do not reject solely for medical marijuana certification; in Philadelphia, no marijuana test unless an exception applies. Public works contractors run E-Verify.
6. First day: Form I-9, W-4, the Residency Certification Form, REV-419 where it applies, and written pay terms.
7. Within 20 days of the date of hire: report through PA CareerLink.

Hiring in more than one state? The same checklist is available for California, Texas, Florida, New York, Illinois and Ohio.