New Overtime Pay Requirements Coming to Pennsylvania
Pennsylvania recently published a final rule that will increase the minimum amount a salaried employee must be paid (among other requirements) in order to be exempt from overtime compensation, beginning in October 2021. Pennsylvania employers, including PASSA members, should review the rule now to prepare for changes to employee compensation.
While Pennsylvania’s new overtime rule sets a new overtime pay threshold for 2020, the 2020 threshold is identical to the federal standard. Pennsylvania’s overtime pay threshold will exceed the federal level on October 3, 2021. The new salary threshold for exemptions under the executive, administrative, or professional designations will be phased in as follows:
- · $684 per week, $35,568 annually, on October 3, 2020 (same as the current federal standard);
- · $780 per week, $40,560 annually on October 3, 2021; and
- · $875 per week, $45,500 annually on October 3, 2022.
PASSA members should carefully review this memo, PASSA members click here, to ensure all employees are appropriately classified as either “overtime eligible” or “overtime exempt.”
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