The PA Department of Labor & Industry (L&I) new overtime rule became effective when the final, approved regulation was published in the PA Bulletin on Oct. 3, 2020. According to the L&I announcement, the changes mark the first update to the commonwealth’s overtime regulations in more than four decades. The final rule updates the salary threshold to reflect current wages paid to Pennsylvanians working in executive, administrative, and professional occupations. It also ensures that the duties tests for executive, administrative and professional workers more closely align to those in the Fair Labor Standards Act’s (FLSA) federal overtime regulations. The FLSA regulations update that took effect on Jan. 1, 2020, raised the federal overtime salary threshold to $35,568. While Pennsylvania’s overtime rule aligns more closely with the FLSA, L&I has set the minimum salary threshold at $45,500 and the increase 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
- $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 also allow up to 10 percent of the salary threshold to be satisfied by nondiscretionary bonuses, incentives, and commissions that are paid annually, quarterly or more frequently. Read more.