Update: Governor Wolf agreed to repeal the regulations mentioned below that increased the minimum salary required for the Executive, Administrative, and Professional overtime exemptions. This provision will go effect on September 7, 2021 and repeals all of the PA regulations for these exemptions.
The likely effect of this repeal is that PA courts will look to the federal law in effect at the time the PA overtime law was first enacted in 1968 to interpret the duty requirements of these exemptions and the minimum salary required will be set at the federal level of $684 per week ($35,568 annually) as of January 1, 2020.
The Pennsylvania Department of Labor and Industry is scheduled to issue proposed regulations in March 2018 that will increase the minimum salary level required to qualify an employee as “exempt” from Pennsylvania’s labor laws on overtime pay.
It is also expected to provide clarification as to the job duties and responsibilities required for overtime pay exemption for executive, administrative and professional employees – making it less likely that employees will be misclassified as exempt when they are in fact non-exempt (and entitled to overtime pay). If these changes become final, it will be the first time in more than four decades that Pennsylvania has updated its state overtime pay rules.
Minimum Salary Level Increase for Pennsylvania
The increases in the minimum salary levels will occur over 4 years, with the first increase becoming effective on January 1, 2020. The proposed initial schedule for the minimum salary level for exempt employees is:
As of 1/1/2020 $610 per week / $31,720 per year
As of 1/1/2021 $766 per week / $39,832 per year
As of 1/1/2022 $921 per week / $47,892 per year
After 2022 Automatic salary level increases every 3 years
The Governor’s office estimates that these proposed salary increases will result in approximately 370,000 more Pennsylvania employees being classified as non-exempt, and therefore entitled to overtime pay when they work over 40 hours per week.
370,000 Employees Classified as Non-Exempt
An Attempt to Restore the Pay Increase for Salaried Exempt Workers
This potential change in PA state overtime law is an attempt to restore the pay increase salaried exempt workers would have enjoyed under federal overtime law had the Obama Administration’s rules increasing the minimum exempt salary amount to $47,476 actually gone into effect as planned on 12/1/16.
The Trump Administration did not support this salary increase and is expected to eventually propose new, lower, salary thresholds (under federal law) in the range of $33,000 to $35,000 per year. Please see this page for the latest updates.
Get Help with Overtime Law
For more information regarding the Pennsylvania overtime pay laws and/or federal overtime pay laws, take a deeper look through our website, get a quick evaluation or call 866-559-0400. All inquiries are confidential and free of charge. Our team of attorneys will help you understand your rights and fight to recover the unpaid wages you may be entitled to – on a contingent fee basis (no fee if no recovery).
Strict time limits that apply to claims to recover unpaid back overtime, so procrastination can be costly. Unless you are 100% certain that you are not legally entitled to overtime pay and/or that your overtime pay has been calculated correctly, you should take a few minutes NOW to get a free and confidential review of your particular situation. There could be tens of thousands of dollars at stake.
