Last month, Governor Tom Wolf announced a proposal to update overtime pay regulations in Pennsylvania, including a significant increase in the salary an employee must earn to be exempt from overtime pay.
Under this plan, the salary threshold would increase from the current federal minimum of $23,660 for professional, executive and administrative workers to $47,892 in 2022. This threshold increase is expected to lead to 460,000 more Pennsylvania employees (approximately seven percent more of the workforce) attaining eligibility for overtime pay.
Expected to be implemented by the Pennsylvania Department of Labor and Industry next month, the proposed rule is designed to slowly but surely reach the salary levels that were previously adopted by the U.S. Department of Labor that were supposed to take effect in December of 2016. However, they were enjoined by a federal court in Texas. The U.S. Department of Labor has since sought judgment on how those proposed rules can be replaced.
To promote compliance, the proposed Pennsylvania rule will clarify the duties tests for professional, executive and administrative employees. After a public review period, the proposal will require approval from a five-member board, who are appointed by Gov. Wolf. Legislative approval is not required, however. The rule-making process may take several months to execute.
The Commonwealth’s planned overhaul acts as a reminder for employers that federal overtime rules only set a “floor” of minimum protection requirements for employees while state law can offer even greater rights. Employers must adhere to state overtime rules, as well as the federal Fair Labor Standards Act, in order to avoid liability cases.
Here at Kozloff Stoudt Attorneys, the business attorneys serving the Reading, PA region, our team of lawyers is committed to assisting ordinary people with their legal issues when it comes to businesses and other employer groups with more leverage than just one person. Representing people in such matters grants us the chance to administer our experience and resources as attorneys to help even the odds on behalf of the average person.
To learn more about this new proposal and how you might be affected, or if you require lawyers experienced in business law in PA, contact us at your convenience. Call 610-370-6700 today.