The U.S. Department of Labor (DOL) and Pennsylvania’s Department of Labor have gone back and forth regarding overtime regulations, and specifically how much a salaried employee must be paid in order to be exempt.
In 2016, the DOL passed regulations raising the salary threshold from $455 per week ($23,360 per year) to $913 per week ($47,476 per year). However, following a legal challenge, those regulations were struck down. In 2019, new regulations were enacted raising the salary threshold to $684 per week ($35,568 per year).
Early in 2020, the Pennsylvania Department of Labor proposed regulations that would raise Pennsylvania’s minimum salary threshold under the Pennsylvania Minimum Wage Act to $875 per week ($45,500 per year). However, in the summer of 2021, Gov. Wolf agreed to repeal the new overtime regulations, and therefore the current Federal salary threshold of $684 per week ($35,568 per year) applies to Pennsylvania workers. The matter, however, is not resolved.
Several months ago, the DOL announced that it was publishing new proposed regulations to the white-collar exemptions, and those regulations are expected at any time. It is widely anticipated that the minimum salary threshold will be increased to at least $47,476 per year, and likely higher. There may also be a provision to create an automatic adjustment to that number, whatever it might be, tied to the Consumer Price Index or another economic indicator. There is also speculation that the duties tests for...
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