Earlier this year, we shared a blog titled “New Overtime Rules in Pennsylvania: What You Should Know.” Given the recent announcement, we wanted to provide a refresher on Pennsylvania’s revised overtime rules.
Pennsylvania Department of Labor & Industry (L&I) announcement.
On Oct. 2, 2020, Pennsylvania’s Department of Labor and Industry (L&I) Secretary Jerry Oleksiak announced that Pennsylvania’s new overtime rule would take effect on Oct. 3, 2020. The final regulations discussing the new rule were published on the effective date.
Oleksiak states that this “...marks the first update to the commonwealth's overtime regulations in more than four decades.”
In general, all hourly employees who work over 40 hours per week are eligible for overtime pay. Salaried employees are similarly eligible unless they meet one of the three exemptions and make more than the salary threshold described below. According to the Bulletin, the exemptions from the overtime provisions may apply to “individuals employed in the following capacities: executive, administrative and professional (EAP).”
Refresher on Pennsylvania’s salary threshold phase-in approach.
The new rules will raise the state’s salary threshold over the course of two years to $875 per week, and $45,500 annually. This rule implements a strategy to increase this threshold using a phase-in approach comprised of three steps beginning in 2020:
- Effective as of January 1, 2020 - $684 per week; $35,568 annually
- Effective as of October 3, 2021 - $780 per week; $40,560 annually
- Effective as of October 3, 2022 - $875 per week; $45,500 annually
The rules permit up to 10 percent of the salary threshold to be met by nondiscretionary bonuses, incentives and commissions paid annually to the employee.
The salary threshold will automatically adjust every three years beginning in 2023.
Read Pennsylvania’s announcement here.
Read more on the differences from the Federal level, and what this means for Pennsylvania employers in our previous blog here.
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Disclaimer: Please note that this is not all-inclusive. Our guidance is designed only to give general information on the issues actually covered. It is not intended to be a comprehensive summary of all laws which may be applicable to your situation, treat exhaustively the subjects covered, provide legal advice, or render a legal opinion. Consult your own legal advisor regarding the specific application of the information to your own plan.