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Pennsylvania's Plan to Raise Minimum Salaries for Overtime-Exempt Workers to $48,000 Scrutinized

Pennsylvania's plan to raise the minimum salary for most overtime-exempt employees to nearly $48,000 has encountered a serious roadblock.

Philadelphia Considers A “Fair Workweek” For 130,000 Employees

In June 2018, Philadelphia City Councilmember Helen Gym introduced legislation designed to improve predictability in scheduled shifts for employees in the retail, hospitality, and food services sector – the second largest sector of the Philadelphia economy.

Pennsylvania Commission Comments on Proposed Amendments to the Commonwealth's White Collar Exemption Regulations

In June, we reported that the Pennsylvania Department of Labor and Industry (DLI) submitted to the Pennsylvania Independent Regulatory Review Commission (IRRC) a proposed rulemaking package that seeks to update the Executive, Administrative and Professional (EAP) exemptions to the Pennsylvania Minimum Wage Act's (PMWA) overtime requirements. Among other things, the proposed changes would significantly increase the salary threshold required to meet the exemptions, automatically increase the salary threshold every three years, and change certain elements of the duties tests. As part of the rulemaking process, DLI requested comments on its proposed rulemaking from the public, members of the legislature, and IRRC.

Pennsylvania House Committee Holds Hearing on Proposal to Increase Number of Salaried Workers Eligible for Overtime

If an employee in Pennsylvania is paid a salary, as opposed to by the hour, that employee is not eligible for overtime no matter how low the salary or how high the number of hours he or she works in a particular week, right? Wrong! According to testimony on September 5, 2018, by senior members of the Wolf administration’s Department of Labor and Industry (DLI) before the Pennsylvania House Labor and Industry Committee, many Pennsylvania employers either do not know—or do not follow—the law. All salaried employees who are paid less than a certain threshold amount must be paid overtime. And even higher-salaried employees can qualify for overtime if their job duties do not fit within one of the three so-called “white collar” exemptions: the executive exemption, the administrative exemption, or the professional exemption.

Non-Compete News: Pennsylvania Considers the "Freedom to Work Act"

Executive Summary: Pennsylvania is entertaining legislation to ban all non-compete covenants. Like other states concerned with the effects of restrictions on the mobility of the workforce, the prohibition on non-compete agreements, Pennsylvania House Bill 1938, is founded on the Commonwealth’s interest in lowering the unemployment rate, promoting innovation, entrepreneurship, and business expansion, improving existing business opportunities for qualified workers, and promoting unrestricted trade and mobility of employees in the workforce. 2017 PA H.B. 1938. Besides banning non-competes, the proposed law creates a private cause of action against any employer trying to enforce a non-compete covenant. Employers violating the law could be liable for compensatory and punitive damages and the former employee’s attorneys’ fees. The bill currently is before the House Labor & Industry Committee.

Pennsylvania Supreme Court Will Hear Employer Appeal in State Minimum Wage Act Case

On February 2, 2018, we reported that General Nutrition Centers, Inc. (GNC), the employer in a case brought by a class of salaried, nonexempt, current or former Pennsylvania store managers, assistant managers, or senior managers under the Pennsylvania Minimum Wage Act (PMWA) (43 P.S. Secs. 333.101–333.115) had asked the Pennsylvania Supreme Court to hear its appeal of a 2–1 decision issued by the Pennsylvania Superior Court on December 22, 2017. The issue was the proper method of calculating the amount of overtime compensation owed to salaried, nonexempt employees.

Major Changes Proposed to Pennsylvania’s Overtime Rules

Employers with operations in Pennsylvania may want to take note of significant changes in the pipeline to the state’s wage and hour rules. Specifically, on June 23, 2018, the Pennsylvania Department of Labor and Industry (PA DLI) published proposed rulemaking containing drastic changes to some of the state’s white collar exemptions to the Pennsylvania Minimum Wage Act (PMWA).

Pennsylvania Proposes More Than Doubling the Salary Level for Overtime Exemptions

On June 12, 2018, the Pennsylvania Department of Labor and Industry (“DLI”) submitted a proposed rulemaking to amend the regulations that exempt executive, administrative, and professional (EAP) salaried workers from overtime requirements under the Minimum Wage Act of 1968.

Keystone State Targets the Gig Economy: Pennsylvania’s New Nonemployee Withholding and Reporting Requirements

On October 30, 2017, Governor Tom Wolf of Pennsylvania signed into law Act 43 of 2017. This new law provides that beginning July 1, 2018, Pennsylvania businesses that pay at least $5,000 in Pennsylvania-source nonemployee compensation or business income to a nonresident individual (or disregarded entity that has a nonresident member) are required to withhold from such payments the current applicable income tax rate (currently 3.07 percent).

Pennsylvania Department of Labor and Industry Proposes Amendments to the State's White Collar Exemption Regulations

The Pennsylvania Department of Labor and Industry (DLI) responded to Governor Tom Wolf’s call to modernize Pennsylvania’s outdated overtime rules for “white collar” employees. On June 12, 2018, the DLI submitted to the Pennsylvania Independent Regulatory Review Commission (IRRC) a proposed rulemaking package that would update the Executive, Administrative and Professional (EAP) exemptions to the minimum wage and overtime requirements of the Pennsylvania Minimum Wage Act (PMWA).