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).
Regulatory Changes. Under the PMWA, for an
employer to classify an employee as exempt and ineligible for
overtime, the employee must be paid on a salary basis and his or
her job duties must meet the requirements of certain defined tests.
The regulatory changes proposed by the PA DLI contain two primary
components: (1) an updated salary level and (2) changes to the
duties test. The PA DLI estimates that the changes it proposes,
detailed below, could affect more than half a million salaried
employees in Pennsylvania and hundreds of thousands of
employers.
