Pennsylvania Overtime Laws & Wages Attorney

Pennsylvania workers enjoy both federal and state protections regarding overtime pay and labor rights. However, in some areas, Pennsylvania law provides a number of more robust benefits for workers compared to federal law. Not all employees are treated fairly or legally and often have their wage payment rights violated by their employers. If you’re one of these individuals, or you have questions about minimum wage, overtime, and related matters, the Lore Law Firm is here to answer them.

The Basics of Pennsylvania Minimum Wage Law

Pennsylvania’s minimum wage law aligns with the federal minimum wage rate of $7.25 per hour. This rate serves as the baseline wage for most workers in the state, but there are notable specifics and exceptions to consider.

In Pennsylvania, the minimum wage for tipped employees is set at $2.83 per hour, which is above the federal rate of $2.13 per hour. Tipped employees must earn at least $135.00 per month in tips. If their earnings from tips combined with the hourly rate of $2.83 do not meet the regular minimum wage of $7.25 per hour, employers are required to make up the difference.

The state minimum wage law specifies several exemptions where the minimum wage does not apply. These include:

• Farm labor
• In-house domestic service
• Newspaper delivery
• Publication of small newspapers
• Outside sales
• Services for educational, charitable, religious, or nonprofit organizations
• Golf caddy roles
• Certain seasonal youth employment, including work involving children with disabilities or at recreational camps
• Employment in public amusement or recreational activities
• Switchboard operators employed by small telephone companies
• Elective office holders and their staff
• Executive, administrative, and professional employees
• Learners, students, and individuals with physical or mental deficiencies that require special permission for exemption

These exemptions and specifics to tipped employees highlight the tailored approach Pennsylvania takes to minimum wage regulations, accommodating various employment types and conditions while ensuring that workers receive appropriate compensation.

Allowances For Minimum Wage

Employers are allowed to include wages and reasonable costs for board, lodging, and other facilities when determining minimum wage. These allowances permit employers to meet the required minimum wage by giving benefits other than direct wages to their employees. The employee must be notified of the allowance and accept it as a condition of employment at the time of hire or change in classification. Certain other restrictions apply to the use of allowances.

Minimum Wage For City And State Contractors And Employees

In some municipalities, there are different minimum wage rules for city contractors and individuals employed by the government. For example, in Philadelphia, government employees, contractors, and subcontractors must be paid $15.00 per hour as of July 1, 2022. From July 1, 2023 onward, the rate will continue to increase according to calculations using the Consumer Price Index. In Pittsburgh, the minimum wage for city workers increased to $15.00/hour in 2021. The minimum wage for Allegheny County non-union county workers will be $18 an hour, with wages increasing annually to at least $22 an hour by 2027.

In January 2022, Pennsylvania state workers (not in the private sector) saw their minimum wage jump to $15.00/hour.

Pennsylvania Overtime Rules

In Pennsylvania, overtime rules are framed by both the Pennsylvania Minimum Wage Act (PMWA) and the federal Fair Labor Standards Act (FLSA). These laws ensure that employees working over 40 hours per week are compensated at a rate of 1.5 times their regular rate of pay, commonly referred to as “time and a half.” This overtime rule applies to both hourly, day-rate and salaried non-exempt employees. Notably, Pennsylvania does not permit the fluctuating workweek method of calculating overtime pay, also known as “Chinese Overtime.” Since Pennsylvania’s minimum wage is $7.25 an hour, if you are paid minimum wage, your overtime rate will be $10.88 an hour.

While the PMWA and FLSA share similar objectives in regulating overtime, their provisions are not identical. Employers in Pennsylvania are required to adhere to both sets of laws and must apply the law that offers the greater benefits to employees where differences arise. This ensures that employees receive the most favorable terms of compensation for overtime, reinforcing the state’s commitment to protecting workers’ rights.

Federal Overtime Laws

Federal overtime laws, governed by the Fair Labor Standards Act, require that employees be paid overtime at 1.5 times their regular hourly rate for all hours worked beyond 40 in a workweek. This rule applies to non-exempt employees, which typically includes hourly workers and certain salaried employees who do not meet the exemption criteria based on their job duties and salary level. The current salary threshold for exemption is set at $684 per week.

Comparatively, Pennsylvania’s overtime laws under the PMWA align closely with the FLSA but include specific provisions that offer greater protections. For example, Pennsylvania does not permit the fluctuating workweek method of overtime calculation, which can reduce the effective hourly rate for overtime under certain conditions. Both employers and employees in Pennsylvania need to be aware of these nuances to ensure compliance and proper compensation.

Overtime For Salaried Employees

Understanding overtime for salaried employees in Pennsylvania involves navigating both state and federal regulations. The FLSA sets the foundational rules, categorizing employees as either “exempt” or “non-exempt” from overtime. Exempt employees, typically in roles such as executives, administrative personnel, and professionals, must meet specific job duty criteria and earn at least $684 per week to be exempt from overtime pay. Conversely, non-exempt salaried employees are entitled to overtime for any hours worked beyond 40 a week.

In the summer of 2022, Pennsylvania revised its regulations under the PMWA to further protect these non-exempt workers. Unlike the FLSA’s potential use of a fluctuating workweek method, where overtime is calculated over total hours worked, the PMWA mandates that overtime is based on a standard 40-hour workweek. For salaried, non-exempt employees, the regular rate is calculated by dividing total compensation by 40 hours. This rate is then multiplied by 1.5 for any overtime hours, often resulting in higher overtime pay compared to the FLSA method.

These changes highlight Pennsylvania’s proactive stance in enhancing worker protections. Employers must correctly classify employees to adhere to these regulations, ensure fair compensation, avoid legal repercussions, and foster a compliant work environment.

What Counts As “Hours Worked” In Pennsylvania?

One significant way Pennsylvania overtime pay laws favor workers is that non-exempt workers (whether paid hourly, salary, piece-rate, or day-rate) must be paid for every minute spent performing “work.” Pennsylvania wage law is much broader than federal law in defining what counts as hours worked. The law requires that workers be paid for time during which an employee is required by the employer to be on the premises of the employer, to be on duty, or to be at a prescribed workplace.

More specifically, hours worked include:

• All time during which an employee is required to be at a designated work location
• All time during which an employee is required to be on duty or to be at a designated work site
• All time spent traveling as part of the employee’s job during normal working hours
• All time during which an employee is permitted to do work

An example of this issue recently arose in a case involving Amazon. The Pennsylvania Supreme Court ruled that mandatory security screenings count as hours worked because workers are under Amazon’s control during these security checks. Those few minutes each day therefore count as hours worked, and the employee must be paid for them.

Some examples of unpaid work that should count as paid time may include:

• Waiting to undergo, and actually undergoing, security screenings or bag checks
• Waiting to undergo, and actually undergoing, health screenings (e.g., tests and temperature checks)
• Computer boot-up, sign-in, and download time spent prior to being “clocked in” at work
• “Clocking out” before spending time shutting down programs and logging out
• Waiting on assignments or being told when to begin while on work premises
• Receiving or sharing work-related information (pre- or post-shift “relief time”)
• Walking, riding, and traveling to and from the actual place of work (e.g., when the employee is required to park in a remote lot and take a bus)
• Driving to or from home in a company vehicle if the employee does some work or starts working before leaving home, talks on the phone or texts for work purposes while driving, or continues to perform work tasks after arriving home. 
• Changing in and out of required work clothes
• Sending or receiving work-related emails and texts or using employer smartphone apps while “off the clock” 
• Checking voicemail or emails at the start of the day
• Time spent developing a plan, schedule, or route for the day
• Time reading or completing required paperwork
• Time loading or stocking equipment

Overtime Exemptions In Pennsylvania

The exemptions from the minimum wage requirements enumerated above apply to the state’s overtime rules as well. In addition, the following occupations are specifically exempted from the overtime rules:

• Seamen
• Certain salesmen, partsmen, and mechanics primarily engaged in selling and servicing automobiles, trailers, trucks, farm implements, or aircraft
• Taxi drivers
• Certain employees of federally regulated motor carriers
• Any employee engaged in the processing of maple sap into sugar (other than refined sugar) or syrup
• Motion picture theater employees
• Announcers, news editors, and chief engineers of a radio or television station, depending on the city in which the major studio is located
• Certain air carrier employees regulated by Title II of the Railway Labor Act

Examples of non-exempt employees (who are entitled to overtime pay) include, among others:

• Retail workers
• Factory and Industrial workers
• Office workers
• Healthcare and Home health workers
• Field workers
• Manual laborers
• Technicians not meeting exemption criteria

Pennsylvania Holiday, Sick Leave, And Vacation Laws

Employers are not required to give employees paid holidays off or additional pay for working on holidays. Pennsylvania labor laws also do not require that employers provide benefits like sick leave, vacation pay, or severance pay. If provided, the employer must follow its own policies for these types of payments.

Some Pennsylvania cities have their own rules concerning these types of pay. For example, employees who work at least 40 hours per year within Philadelphia city limits will be eligible to earn paid and unpaid sick leave. If an employer has 10 or more employees, it must provide paid sick leave. Employers with fewer than 10 employees must provide unpaid sick leave.

Pennsylvania Meal Break And Rest Period Laws

Meal and rest breaks are not required for adult employees (age 18 and over). Minors between 14 and 17 years old must receive a meal break of at least 30 minutes if they work 5 or more consecutive hours. If an employer does give a break and the break is less than 20 minutes, employees must be paid for this time. If employees are given a meal break lasting more than 20 minutes and are relieved of all work during this period, the employee does not have to pay for this time.

Required Pay Periods In Pennsylvania

Employers must pay employees on regularly scheduled paydays designated by the employer. Employees must be informed during the hiring of the time and place of payment and the pay rate and fringe benefits to be paid. The time between the end of the pay period and the payday must not exceed:

• Time specified in a written contract between the employer and employee;
• The standard customary in the trade; or
• 15 days

Payroll Deductions For Pennsylvania Workers

Employers may make deductions from their employee’s wages that are required by law. In addition, employees may give written permission for deductions to be made that benefit the employee (for example, to pay back a loan from a third party). Blanket deduction authorizations signed at hiring will not be valid. Deductions generally cannot reduce gross pay below minimum wage.

As with other aspects of Pennsylvania labor law, some cities provide additional protections to workers. For example, a Pennsylvania employer that allows patrons to pay gratuities by credit card must pay employees the full amount of the gratuity indicated on the credit card slip without any deduction for credit card payment processing fees or costs. Gratuities made by patrons using credit cards shall be paid to the employees not later than the next regular payday following the date the credit card payment was authorized.

Payroll Records For Pennsylvania Employees

Employees must be provided with a pay stub for each pay period. The stub must show the beginning and end dates of the pay period, the number of hours worked, the pay rate, the amount earned, itemized deductions, and net pay.

Statute of Limitations For Pennsylvania Wage And Hour Claims

Employees do not have an unlimited amount of time to file complaints concerning unpaid wages or minimum wage or overtime violations. Under the Pennsylvania Wage Payment and Collection Law, an employee must file a complaint within three years of the date the wages were due and payable. Depending on the circumstances of the case, the employee can win back pay, liquidated damages in an amount equal to the back pay, and reasonable attorney’s fees and court costs.

Contact Our Pennsylvania Wage and Hour Attorney

Even though you have up to three years from the date wages were due to take legal action, it’s a good idea not to wait. Records can be misplaced, lost, or destroyed, and details can be forgotten with time. If you suspect that you have not been paid correctly for your work or that your employer is violating other state or federal wage and hour protections, contact the Lore Law Firm today. Our legal team is ready to listen to your issues and provide a free and confidential review of your situation.