New Overtime and Minimum Wage Rules in Pennsylvania

How Will They Affect You?

New regulations governing overtime pay and minimum wage went into effect on Saturday, October 3, 2020. And it’s about time. This is the first time these regulations have been updated in approximately 40 years. 

According to the official press release from the Pennsylvania governor’s office, these changes are anticipated to have widespread impact—expanding overtime eligibility to about 143,000 people throughout the commonwealth, and making protections more robust for more than 251,000.

Here’s an overview of the specifics.

A New Salary Threshold

At the beginning of 2020, the federal government raised the threshold at which someone is considered “salaried” and thus not eligible for overtime pay to $35,568.

On October 3, Pennsylvania established its own minimum salary threshold of $45,500—which is projected to significantly expand the number of people in the state eligible for overtime pay. This change will be phased in gradually as follows:

• On January 1, 2020, Pennsylvania’s salary threshold aligned with the federal rule: $684 per week and $35,568 per year.
• On October 3, 2021, Pennsylvania’s salary threshold will rise to $780 per week and $40,560 per year.
• On October 3, 2022, Pennsylvania’s salary threshold will rise to $875 per week and $45,500 per year.

Beginning in 2023, the threshold will continue to go up automatically once every three years to stay in line with current wages.

These new rules allow up to 10% of wages that count towards your salary threshold to be counted as nondiscretionary incentives, bonuses, or commissions.

New Rules on Overtime Eligibility

Here are the updated rules for who is eligible for overtime pay in Pennsylvania. Those who are eligible include:

• Most hourly employees who work more than 40 hours per week, regardless of their job description.
• Most salaried employees who work more than 40 hours a week and earn less than the salary threshold for overtime pay, regardless of their job description.
• Most salaried employees who do not meet the administrative, executive, or professional exemptions , regardless of their pay rate.

So, in general, if you are paid on an hourly basis and your job duties meet the administrative, executive, or professional exemptions, you may still be eligible for overtime pay.

What’s more, if you happen to earn a yearly salary, but your job duties do not meet the administrative, executive, or professional exemptions, you may also be eligible to earn overtime pay—regardless of how much you are paid.

On the other hand, those who are not eligible to receive overtime pay include, but are not limited to:

• Those who receive a yearly salary, make more than the salary threshold, and whose job duties meet the administrative, executive, or professional exemptions.
• Those who work in occupations exempt from overtime pay as provided by the Pennsylvania Minimum Wage

As you can see, a lot depends on whether your job description qualifies as “executive, administrative, or professional.”

The new rules also updated the job descriptions that fall under that category, aligning it more closely with FLSA rules at the federal level.

Got Questions About Your Overtime Eligibility? Ask a Pennsylvania Employment Lawyer 

If you suspect the new overtime rules should qualify you for overtime pay—but your employer still isn’t paying it—they may be in violation of the law.

A knowledgeable Pennsylvania employment lawyer can help determine whether you qualify for overtime pay, and if you do, they can hold your employer accountable—and ensure you get all the compensation you’re entitled to.

Call us at 267-273-1054 or email us at murphy@phillyemploymentlawyer.com for a free, confidential consultation today.

The information provided here does not constitute legal advice. It is intended for general purposes only. If you have questions about a specific legal issue, you should speak to an attorney.