Terri Johnson, CPA
New PA Overtime Rules Take Effect
Pennsylvania has adopted new overtime salary thresholds for executive, administrative and professional employees. It also aims to ensure that the employees being paid a salary meet the duties tests as set forth in Fair Labor Standards Act (FLSA) federal overtime regulations.
PA's overtime law currently follows the Federal salary threshold of $35,568 (or $684 per week). However, it will increase to $45,500 by October, 2022 and will then adjust automatically every three years. These salary amounts can be satisifed by allowing up to 10% of the salary to be paid via nondiscretionary bonuses, incentives and commissions paid annually, quarterly, or more frequently.
The increases will go into effect on the following dates:
January 1, 2020 - $35,568 (or $684 per week)
October 3, 2021 - $40,560 (or $780 per week)
October 3, 2022 - $45,500 (or $875 per week)
For more details, please see the attached DOL Overtime Compliance Guide: