Andrea M. Kirshenbaum of Post and Schell Pa. Significantly Increases OT Salary Thresholds Under the Minimum Wage Act
The final rule includes, among other changes, an increase in the salary thresholds to qualify for the EAP exemptions under the PMWA. The weekly salary thresholds will rise over two years (from the current federal level under the Fair Labor Standards Act of $684 to $780 to $875) and then will be "automatically" updated in 2023.
October 26, 2020 at 12:06 PM
6 minute read
By Andrea M. Kirshenbaum
On Oct. 3, the Pennsylvania Department of Labor and Industry (L&I) published its final rulemaking in the Pennsylvania Bulletin updating the decades-old regulations applicable to three classes of overtime exempt employees under the Pennsylvania Minimum Wage Act (PMWA): executive, administrative and professional (EAP). The final rule includes, among other changes, an increase in the salary thresholds to qualify for the EAP exemptions under the PMWA. The weekly salary thresholds will rise over two years (from the current federal level under the Fair Labor Standards Act of $684 to $780 to $875) and then will be "automatically" updated in 2023.
In a year where every day feels like Groundhog Day, this seems like more of the same. Pennsylvania's final rule is nearly identical to the final regulations the U.S. Department of Labor (DOL) issued in 2016 and that were enjoined by a federal court days before they were set to go into effect. Those regulations would have increased the weekly salary requirements for EAP employees to remain exempt from overtime under the Fair Labor Standards Act (from $455 to $913 per week). Pennsylvania's final rule is the latest example of states and localities seeking to adopt more protective wage and hour legislation and regulations.
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