Several wage and overtime changes will affect Pennsylvania employers starting August 5, 2022. Some updates bring Pennsylvania’s wage and overtime regulations more in line with the Federal Fair Labor Standards Act (FLSA), while others expand the distance between the two.
Employers utilizing tipped employees or a fluctuating workweek method to calculate overtime rates should pay special attention to these updates, explained here, and adjust their policies accordingly.
Overtime Updates
The FLSA permits employers to use a fluctuating workweek method of calculating overtime rates for salaried, nonexempt employees whose work hours vary weekly. Under the FLSA’s fluctuating workweek method, overtime pay is determined by dividing the employee’s fixed weekly salary by the number of hours actually worked in the week. For every hour worked in excess of 40 hours in that workweek, the employee must receive an additional 0.5 times that calculated rate (meaning, “half time,” instead of the typical calculation of time and a half).
Starting August 5, Pennsylvania employers must calculate the overtime rate on a 40-hour workweek, instead of the number of hours actually worked. Furthermore, employers must pay the overtime rate at time and a half, instead of just the half time rate. Consequently, the regulation updates fundamentally eliminate an employer’s ability to use the fluctuating workweek method of calculating overtime rates.
In 2019, the Pennsylvania Supreme Court ruled that state law...
Did White House Press Secretary Karoline Leavitt resign because she was left on the decoy Air Force One plane reportedly targeted by Iran? Trump Falsely Claims Childhood Vaccines Contain the Same V...