Pennsylvania Overtime Laws:- Employers in Pennsylvania must be completely aware of the obligations pertaining to the state's overtime rules and take appropriate measures to avoid fines and other consequences.
Employers are required by Pennsylvania Labour Law to abide by rules pertaining to overtime under the Pennsylvania Minimum Wage and Fair Labour Standards Act (FLSA).
Although the FLSA exempts certain jobs from overtime duties, Pennsylvania’s minimum wage laws may dictate otherwise.
Pennsylvania Pay & Compensation for Overtime
The Pennsylvania Overtime Law states that for every hour above 40 worked in a workweek, employees in Pennsylvania who are subject to either state or federal overtime requirements are normally entitled to 1.5 times their regular rate of pay.
Example of PA Overtime Calculation:
40 Hours at Regular Rate X $15 Per Hour
=$600-Regular Rate
$15 per hour for regular rate +1.50 for overtime premium
= $22.50 for overtime rate per hour.
$22.50 x 10 overtime hours = $225
“Straight Time” or $600 Regular Rate Time + 225 Overtime
= $825 Total Pay.
The normal hourly wage of an employee is their regular rate of compensation. If an employee’s pay varies occasionally, establish the regular rate of pay as the average.
What is Pennsylvania’s overtime legislation?
Federal statutes and Pennsylvania Department of Labour regulations combine to form the rules governing overtime compensation. When it comes to child labour, minimum wage, and overtime compensation, federal regulations set a minimum standard for workers nationwide. The Federal Fair Labour Standards Act (FLSA) of 1938 contains the federal statutes. States are allowed to give employees greater rights and benefits than the FLSA does, but not fewer.
Pennsylvania law requires businesses to pay “time and a half” for all hours performed beyond the 40-hour work week, in line with federal law. This implies that for any time spent beyond the 40-hour workweek, you must be paid $15 per hour if your normal rate of pay is $10.
Pennsylvania’s minimum wage and overtime regulations
The amount of overtime to which you are entitled depends on whether you are paid on an hourly or salaried basis. When it comes to minimum salaries, Pennsylvania law must abide by federal law. The minimum wage legislation mandates that all companies pay workers a baseline minimum wage of $7.25 per hour for a maximum of 40 hours; after that, overtime is required under federal, state, and local laws. Only the overtime hours you have worked are eligible for payment.
On your subsequent paycheck, you have to get paid for the overtime you put in. Any overtime hours should be added in your next paycheck, for instance, if you receive your wage on a weekly basis. Your pay stub ought to show you:
- The number of hours you put in
- How much money you made
- How many hours did you work overtime?
- How much you were paid in overtime
- Dates of start and finish for the specified pay period
Pennsylvania’s Eligibility Over Time
Generally speaking, unless an employee satisfies certain requirements, they are all entitled to overtime compensation in Pennsylvania.
It’s important to remember, though, that notwithstanding the limitations listed below, an employee is entitled to overtime pay if their weekly pay is less than $684 ($35,568 annually).
Pennsylvania’s overtime laws exemptions
This does have some exceptions, but not as many as it once did.
In the past, there have been instances where workers attempted to avoid having to pay overtime in Pennsylvania. One of them is paying workers a salary as opposed to an hourly wage. Theoretically, paying employees a wage allows them to work longer hours without needing additional compensation from the company.
Nonetheless, even in cases when workers are salaried, the new rule mandates that companies provide overtime compensation. The equivalent hourly rate for salaried personnel is now calculated using the weekly amount received on salary (or the monthly amount divided by four weeks), and this rate is used to determine overtime pay.
For instance, a salaried worker earning $2,600 a month would be making $650 a week. When a typical 40-hour workday is divided, this comes out to $16.25 per hour. Therefore, the salaried employee would be entitled to 1.5 times the $16.25 rate for any time over the 40 hours worked.
Nevertheless, some employees are free from overtime requirements. Because work contracts contain provisions regarding exemptions, you will be aware if you are an exempt employee. C-suite executives and company owners are a couple of instances of exempt personnel.
Conclusion (Pennsylvania Overtime Laws)
In general, Pennsylvania’s overtime compensation regulations were revised in 2020 to bring them substantially closer to federal law. With very few exceptions, you are entitled to overtime pay for any hours worked exceeding 40.
In the event that you get a salary, your relative hourly rate is calculated using that information.
Your overtime amount is then calculated by multiplying the hourly rate by 1.5. You may file a claim for unpaid overtime at the state and federal levels for up to three years.