Pennsylvania Commission Approves New Rules Extending Overtime Pay for Thousands of Workers

Pennsylvania State Capitol

Pennsylvania Governor Tom Wolf praised the state’s Independent Regulatory Commission (IRRC) for approving the Depart of Labor & Industry’s new overtime rules that are beneficial to workers.

According to Gov. Wolf, the new rules will extend overtime pay eligibility to additional 82,000 workers.

Under the new rules, full-time salaried workers in executive, administrative, and professional jobs making less than $45,500 by 2020 are eligible for overtime pay. The increase will be phased in over three steps”

  • $684 per week, $35,568 annually (a federal rule that went into effect January 1, 2020);
  • $780 per week, $40,560 annually in 2021; and
  • $875 per week, $45,500 annually in 2022.

The salary threshold will adjust automatically every three years starting in 2023.

Meanwhile, the federal government raised the salary threshold to $35,568 on January 1, 2020. The move means 61,000 Pennsylvanians became newly eligible for overtime pay.

The combined rule changes resulted in approximately 143,000 more Pennsylvania workers will be eligible for time-and-a-half pay by 2023.

New overtime rules is a win for Pennsylvania workers

In a statement, Gov. Wolf said, “This is an important victory for thousands of workers. People who work overtime should be paid for it. This is absolutely the right thing to do.

“Today’s approval of my plan will modernize our outdated overtime rules so more people are eligible for time-and-a-half pay. This will put more money in the pockets of workers and strengthen the middle class,” he added.

The new overtime rules still need the approval of Attorney General Josh Shapiro before its publication in the Pennsylvania Bulletin and become effective later this year.

Gov. Wolf renews effort to push for a minimum wage increase

Last week, Gov. Wolf renewed its call to Pennsylvania lawmakers to support his proposal to increase Pennsylvania’s minimum wage to $12 per hour with a pathway to $15 per hour.

The governor is proposing raising the state’s minimum wage from $7.25 to $12 an hour on July 1, 2020. The minimum wage will increase by 50 cents per year until reaching $15 per hour in 2026.

“Despite widespread support from the public, it’s been more than a decade since the General Assembly passed a minimum wage increase. There are far too many Pennsylvanians working full-time and multiple jobs who are still unable to support themselves and their families,” said Gov. Wolf.