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New Overtime Pay Regulation in Pennsylvania May Create Obligations for Employers Beyond Federal Requirements

On February 19, 2020 by Schnader in Client Alerts

Karen Baillie, partner and co-chair of the Higher Education Practice Group, and Matthew N. Korenoski, an associate in the firm’s Litigation Services Department, published a new client alert, “New Overtime Pay Regulation in Pennsylvania May Create Obligations for Employers Beyond Federal Requirements.” It reads in part:

On January 31, 2020, the Pennsylvania Independent Regulatory Review Commission (IRRC) adopted an amendment promulgated by the Pennsylvania Department of Labor and Industry (DLI) to increase the minimum salary required to avoid overtime compensation for Executive, Administrative and/or Professional (EAP) workers. The new minimum salary is $684 per week ($35,568 annually).

The new required minimum salary in Pennsylvania matches the new federal threshold which became effective January 1, 2020, but in 2021 (one year after the new regulation is published in the Pennsylvania Bulletin) the Pennsylvania minimum will exceed the federal level. The amendment also attempts to align Pennsylvania’s “duties tests” with the federal regulations, but gaps remain, including the differing salary thresholds beginning in 2021. This may present significant challenges for employers who must comply with both state and federal law.

Read the full alert here.