Pennsylvania’s New Salary Threshold for Overtime

On October 3, 2020, Pennsylvania’s new overtime rules went into effect that change the salary threshold of those eligible to receive overtime compensation in Pennsylvania. This is the first update to Pennsylvania’s overtime regulations in more than 40 years.

As employers know, the Federal overtime regulations for the Fair Labor Standards Act were updated effective January 1, 2020, which raised the overtime salary threshold to $35,568. Pennsylvania’s new overtime rule has set the minimum salary threshold at $45,500, which will be phased in over three steps with the final threshold going into effect October 3, 2022:

• $684 per week, $35,568 annually, on January 1, 2021 (note: this is the current level required by federal law; it has been in effect since January 1, 2020 per FLSA regulations);
• $780 per week, $40,560 annually on October 3, 2021; and
• $875 per week, $45,500 annually on October 3, 2022

Starting in 2023, the salary threshold will adjust automatically based on the average wages of occupations in Pennsylvania that are exempt every three years.

For more information, please contact Theresa Zechman or reach out to the Stevens & Lee attorney with whom you regularly work.

This News Alert has been prepared for informational purposes only and should not be construed as, and does not constitute, legal advice on any specific matter. For more information, please see the disclaimer.