New Pennsylvania Overtime Rules in Place for Salaried Employees Starting August 5, 2022

New Pennsylvania Overtime Rules in Place for Salaried Employees Starting August 5, 2022

Ever since it was last amended in 2006, the Pennsylvania Minimum Wage Act established a fixed overtime rate for all salaried, non-exempt employees in Pennsylvania. That will change starting August 5, 2022, when Pennsylvania’s overtime regulations for salaried, non-exempt employees will better align with the Federal Fair Labor Standards Act (FLSA).

What does this mean? Rather than using the “fluctuating workweek” calculation for the overtime pay for salaried, non-exempt employees, Pennsylvania employers will be required to base overtime pay on a 40-hour work week, no matter how many hours the employee works in each week or the amount they are paid. Under this new rule, overtime pay is calculated by taking the total of the employee’s pay for that week and dividing it by 40 hours. The employer must then pay 1.5 times that rate for any time worked beyond 40 hours. This new overtime pay calculation will also apply to hourly employees.

Employee classifications that continue to be exempt are executives, administrative personnel, and professionals.

If you would like to discuss what this means for you and your business, call us at 215-723-4881 or contact us online.

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