The Pennsylvania Department of Labor and Industry has implemented new regulations under the Pennsylvania Minimum Wage Act (PMWA) that go into effect on August 5, 2022. The regulations make a number of important changes for employees who receive tips or service charges, as well as to overtime calculations for certain employees.
Some of the most-common questions that employers have asked about these new rules are discussed in this special report. (For an overview, see our article, Pennsylvania Regulatory Commission Approves Expansive Tipped Employee Regulations.)
Which employees do the new regulations cover?
The new rules make a number of changes affecting employees whose pay includes tips or service charges. They also change how regular and overtime rates are calculated for non-exempt salaried employees only.
The new regulations provide: “The regular rate for salaried employees who are not exempt from overtime is the amount of remuneration determined under subsection (a), [which provides that all remuneration shall be included, with certain exceptions,] divided by 40 hours.” 34 Pa. Code § 231.43(g) (emphasis added). This change essentially codifies the Pennsylvania Supreme Court’s decision in Chevalier v. General Nutrition Centers, Inc., 656 Pa. 296 (2019), prohibiting use of the fluctuating-workweek method to calculate overtime for non-exempt salaried employees under the PMWA. Nothing in the new regulations extends this change to anyone other than non-exempt salaried...
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https://www.natlawreview.com/article/pennsylvania-s-new-requirements-tipped-a...