Pennsylvania is joining several other states that have recently expanded protections and increased the earning potential of thousands of workers in ways that exceed corresponding moves by the federal government. On January 31, 2020, the Pennsylvania Independent Regulatory Review Commission (IRRC) raised the salary cap under which salaried employees must receive overtime pay for any hours worked over 40 in a given week. The new salary threshold will not become effective until amended regulations are published in the Pennsylvania Bulletin.
The move comes after the U.S. Department of Labor (DOL) issued a final rule change last fall that raised the salary threshold for overtime pay eligibility under the Fair Labor Standards Act (FLSA).
By 2022, Pennsylvania’s Overtime Pay Salary Cap Will Be Double What It Was in 2019
The FLSA, a federal law that imposes minimum wage, overtime pay, and other requirements on almost all American employers, provides that all “non-exempt” employees must receive one and a half times their regular wage for all hours worked over 40 in any given workweek.
Before 2020, federal law did not require employers to pay overtime pay to salaried employees whose primary job responsibilities involved “executive, administrative or professional” if that employee’s salary was $23,660 per year – or $455 per week – or higher. Under the new federal rule, which took effect on January 1, 2020, a worker can now earn a salary of up to $35,568 per year – or $684 per week – and still be entitled to overtime pay.
The IRRC’s recent move raised Pennsylvania’s overtime salary cap to the new federal level. However, in 2021, Pennsylvania’s overtime pay threshold will become higher than the federal one. On the first anniversary of the effective date of the new rule, the cap will go up to $40,560 per year ($780 per week), and in 2022 it will rise to $45,500 per year ($875 per week), almost double what the federal cap was just a few months ago. The new regulation also contains provisions for additional annual adjustments to the threshold after 2022.
Clarification Regarding Job Responsibilities Eligible For Overtime Pay
As noted, salary level is not the only factor that plays a role in determining whether a salaried employee must be paid overtime. The employee’s duties must also meet the requirements of certain defined tests. The new regulation amends those tests to correspond more closely to the duties test used by the federal government under the FLSA.
Pennsylvania Workers: Learn if You Now Deserve Overtime Pay by Contacting the Overtime Pay Attorneys Today for Your Free Consultation
If you believe that the amount of your salary or the nature of your job responsibilities may entitle you to overtime pay under Pennsylvania’s new regulations, speaking with an experienced wage and overtime pay attorney is the best way to understand your rights. Together, we can ensure that you receive every dollar you deserve for every hour you work.