Tuesday, October 29, 2019

"Pennsylvania Moving Forward with New Overtime Rules"

The new federal overtime regulations draw a lot of attention and media coverage. In Pennsylvania, however, they may be irrelevant in about a year. The PA Department of Labor and Industry (DLI) announced that it is moving forward with its own new overtime rules.

DLI submitted the final rule, which must be approved by the Independent Regulatory Review Commission before it takes effect. Like the federal rule, it raises the minimum salary level for the white collar exemptions (executive, administrative, and learned professional). The PA rule will set an even higher threshold starting in the second year:
This increase will be phased in over three steps: $684 per week, $35,568 annually (per federal rule), on January 1, 2020; $780 per week, $40,560 annually in 2021; and $875 per week, $45,500 annually in 2022.
Astute readers will notice that the PA cutoff in 2022 is slightly lower than the one initially proposed. Presumably, there will be some litigation around both the fed and PA rules - so stay tuned.

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