Pennsylvania Increases Salary Threshold for Overtime Exemptions

Compliance | Oct 8, 2020
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Pennsylvania updated their salary threshold that executive, administrative, or professional employees need to make in order to be exempt from overtime. These updates will be phased in over three steps; the first step went into effect October 3, 2020.

The breakdown of Pennsylvania’s implementation is as follows:

  • October 3, 2020 - $684/week, $35,568 annually. This matches federal regulations that have been in effect since January 1, 2020.
  • October 3, 2021 - $780/week, $40,560 annually.
  • October 3, 2022 - $875/week, $45,500 annually.

Starting in 2023, the salary threshold will adjust automatically every three years. The adjustment amount will be based on the average wages of occupations in Pennsylvania that are exempt.


Overtime Exemptions

In order to be exempt from the overtime requirement, an employee must meet all of the following criteria:

  • Be paid on a salary basis.
  • Primarily perform executive, administrative, or professional duties. You can learn more about the “duties test” at the Pennsylvania Department of Labor and Industry’s website.
  • Be paid at least a weekly salary specified by Minimum Wage Act regulations. As of January 1, 2020, this amount is $684 per week.


For More Information

The Pennsylvania Department of Labor and Industry published two fact sheets - one for employers and another for employees - that explains these new overtime exemption rules.


Source: Overtime Rules in Pennsylvania, Pennsylvania Department of Labor and Industry