New overtime rules take effect this weekend in Pennsylvania

Pennsylvania

This new rule increases the salary threshold so more salaried workers can earn overtime

Pennsylvania money, generic

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HARRISBURG, Pa. (WKBN) – New overtime rules take effect Saturday that will expand overtime eligibility for thousands of workers in Pennsylvania.

The new rules update the salary threshold for executive, administrative and professional occupations to receive overtime.

With few exceptions, all hourly employees who work more than 40 hours per week can earn overtime. Most salaried employees who work more than 40 hours a week and earn less than the salary threshold, regardless of job duties, can also earn overtime.

This new rule increases the salary threshold so more salaried workers can earn overtime.

New federal guidelines went into place Jan. 1 putting the threshold at $35,568, but the Pennsylvania Department of Labor and Industry is raising it to $45,500.

The increases will be phased in three steps:

  • $684 per week, $35,568 annually (per federal rule), on Jan. 1, 2020;
  • $780 per week, $40,560 annually on Oct. 3, 2021; and
  • $875 per week, $45,500 annually on Oct. 3, 2022.

Starting in 2023, the salary threshold will adjust automatically every three years.

The new rules will impact 143,000 workers.

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