Updated Rules in PennsylvaniaTipped Worker Rules Now in Effect As of August 5, 2022, updated rules affecting tipped workers and salaried workers who work a fluctuating work week schedule are in effect. A summary of these regulations can be found below or by
accessing our Updated Regulations Presentation. The Minimum Wage Act Regulations can be found on the Pennsylvania Bulletin website at 34 Pa. Code Chapter 231. Minimum
Wage. Show If you believe you are owed money by your employer, please file a complaint using the Minimum Wage and Overtime Complaint Form. For more information and instructions on how to file a complaint, visit our
instructional page. Credit Card and Other Payment Processing Fees
Tip Pooling
Definition of Tipped Employee
80/20 Rule
Service Fees
Federal Overtime Rule For Salary Employees is in EffectAs part of the 2021-2022 budget package, Act 70 became law on July 9, 2021, which amended the Administrative Code (P.L. 177, No. 175) to abrogate sections 231.82, 231.83, and 231.84 from the regulations for the PA Minimum Wage Act. Effectively, this means that unless future regulations are proposed and approved, the Bureau is unable to enforce provisions of the executive, administrative, or professional exemptions from the Pennsylvania Minimum Wage Act. Federal regulations regarding exemptions for executive, administrative, and professional employees from overtime remain in effect. The United States Department of Labor (USDOL) published its revised final regulations concerning its overtime requirements under the FLSA on September 24, 2019. (29 CFR 541). The update in federal regulation included raising the salary threshold from $455 to its current level of $684 weekly (equivalent to $35,568 annually). When there are differences between state and federal law or regulations, an employer should follow the law or regulation which provides the most protection to workers. Therefore, despite the changes made to the Pennsylvania overtime regulation in the 2021-2022 budget by Act 70, you should consult with the
United States Department of Labor's Wage and Hour Division (WHD) at 1-866-487-9243 or www.dol.gov to learn more about their regulations on salaried employees. Federal Overtime Rule (effective January 1, 2020)An employee is entitled to at least minimum wage and overtime pay at time and a half for all hours worked over 40 hours per week. However, the federal Fair Labor Standards Act (FLSA) does not require overtime pay for "any employee engaged in a bona-fide executive, administrative, or professional capacity" who is paid on a salaried basis instead of an hourly wage and meets the minimum salary threshold defined in federal regulations. (29 U.S.C. § 213a(1). The United States Department of Labor (USDOL) published its revised final regulations concerning its overtime requirements under the FLSA on September 24, 2019. (29 CFR
541). The new federal regulations took effect on January 1, 2020. The update to federal regulation includes:
New regulations that update the definition of "regular rate" [34 Pa Code § 231.43. Regular rate] for salaried employees whose overtime pay is determined by the fluctuating workweek method will take effect August 5, 2022. These regulations clarify that for the
purpose of calculating overtime the regular rate is based on a 40-hour work week. Please see the overtime FAQs and examples further down this website for more information. |