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Articles Tagged with Overtime Pay

On October 3, 2020, Pennsylvania established a new overtime rule that will allow more workers to be eligible for overtime wages. The Pennsylvania Department of Labor and Industry’s Secretary, Jerry Oleksiak, stated in a press release that “the modernized regulation will expand eligibility for overtime to 143,000 people and strengthen overtime protections for up to 251,000 or more. This final rule ensures that employees who work overtime are fairly and fully compensated for their labor in accordance with the original intent of the Pennsylvania Minimum Wage Act.”

Secretary Oleksiak also said that the new rule will be the first update to overtime regulations in over 40 years. The Pennsylvania Department of Labor and Industry has created a three-phase plan that will gradually increase the minimum salary for workers to receive overtime. As listed on the Pennsylvania Department of Labor and Industry’s website, the first phase that was initiated on January 1, 2020 included workers who make $684 a week and $35,568 annually. October 3, 2021 will start the next phase consisting of people who make $780 a week and $40,560 a year. Finally, the last phase of people who make $875 weekly and $45,500 yearly will be eligible starting on October 3, 2022. Following the three stages, the Department plans to adjust the threshold every three years automatically.

There are other eligibility requirements that have not changed in order for people to receive overtime wages. Most hourly workers that work over 40 hours a week will be considered for overtime. In addition to employees that work more than 40 hours weekly, most workers who make less than the listed salary can also earn overtime payment. This requirement does not include the workers’ job duties. Finally, a majority of employees who are paid salary are eligible if they do not complete executive, administrative, or professional duties; the amount of money people make are not included in the requirement. However, there are other circumstances in which people are unable to receive overtime payments. For example, employees who are paid salary, make more than the listed annual salary, and preform executive, administrative, or professional duties will not be considered for overtime wages.

Employees of Advanced Oilfield Services L.L.C., Bimbo Bakeries USA Inc., and Wizzard Drain Cleaning L.L.C. have claimed that the companies failed to pay for overtime wages for workers. Employers failing to pay proper wages for hours worked is common. In 2015, nearly 9,000 claims were brought against employers for wage and hour related issues.

Under Pennsylvania law, employers are required to pay most employees overtime or “time-and-a-half” wages for any hours worked over 40 hours a week. For example, if you make the Pennsylvania state minimum wage of $7.25 an hour and qualify for overtime pay, you would earn $10.88 an hour for every hour you work over 40 hours a week. Certain workers are not covered by Pennsylvania laws and Federal laws regarding overtime pay based on their job duties. This means that an employer is not required to pay workers that perform certain duties extra wages for time worked over 40 hours a week.

 

Employers may use different ways to prevent paying overtime wages you are owed. Employers may classify an employee as an Independent Contractor or an “Exempt” Salaried employee. Employers may even offer to shift time between weeks. For example, if you worked 60 hours one week, an employer might allow you to work 20 hours the next. These kinds of shifting time schemes are often illegal.

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