New Pennsylvania Overtime Pay Regulation Now In Effect

In our previous alert, we recognized that the new Pennsylvania overtime pay regulation, adopted in January 2020, would be effective upon publication in the Pennsylvania Bulletin. That date has now occurred. The Pennsylvania Bulletin finally published the overtime regulation so that the effective date for the new rules is October 3, 2020.

This means that the minimum salary required for exempt executives, administrators and professional (EAP) employees in Pennsylvania is now $684 per week ($35,568 annually) effective October 3, 2020, will be $780 weekly ($40,560 annually) effective October 3, 2021, and $875 weekly ($45,500 annually) effective October 3, 2022. Under the federal Fair Labor Standards Act (FLSA), the minimum weekly salary required for EAP employees to be exempt from minimum wage and overtime requirements is currently $684.

Please click below to read our earlier article for more information about exemptions available under the federal FLSA that may need special attention in Pennsylvania (for example, doctors, lawyers, teachers, coaches, academic administrators, and computer professionals). The Pennsylvania regulation does not include provisions that correspond to the federal exemptions for these categories of employees. Businesses which rely on these exemptions may want to consider taking action with regard to positions that may not qualify for the exemptions under the new Pennsylvania regulation. Possible actions may include: (a) raising salaries of employees; (b) reassigning work; (c) hiring additional employees to reduce overtime exposure; and (d) tracking and paying overtime as needed starting October 3, 2020.

Click here to read Schnader's February 2020 client alert with more details about this topic.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.