You work hard at your job, even putting in extra hours. When you work those longer hours, you may ask yourself, “Should I be paid overtime?” In some cases, the answer is yes, but there are exemptions to overtime wages. As of 2020, these exemptions have changed.
Whether you had an understanding of the previous Pennsylvania overtime eligibility or you never knew about such state and federal exemptions, you need to understand the federal and Pennsylvania overtime wage laws update as of 2020. With this knowledge, you’ll be able to answer that critical question — am I eligible for overtime payment?
Before you learn about the federal and Pennsylvania overtime wage laws update for 2020, there are some terms that will improve your understanding of the update. Familiarize yourself with these terms and phrases associated with overtime law:
Those terms will improve your understanding of the new federal overtime laws and ones in Pennsylvania taking effect in 2020.
The Fair Labor Standards Act will change its standards for overtime in 2020 to an increased threshold for exempt employees. Beginning January 1, 2020, the salary threshold for exempt employees is $684 per week, which equates to an annual salary of $35,568. This change means that if you earn less than $684 a week, you may be eligible for overtime wages, and if you earn over $684, you may not be eligible to receive overtime pay.
The update determines whether an employee is exempt from overtime based on their salary, though their type of position also has an impact on eligibility. This threshold applies to employees in the following categories:
Previously, the requirement was $455 per week or an annual salary of $23,660. These new federal overtime wage laws will add 1.3 million Americans to those eligible for overtime pay. Other changes under the new federal overtime laws include:
As it has been in the past, the Department of Labor (DOL) has decided that it will not use a formula to update these thresholds automatically. It is, however, committed to updating the threshold more often.
Just as you must understand how the federal laws are changing, you also need to know Pennsylvania’s updated overtime rule that the Pennsylvania Department of Labor proposed. In some respects, the new proposed overtime wage laws in Pennsylvania offer greater rights than the new federal laws. Pennsylvania is one of six states that attempted to increase their threshold from the new federal overtime laws.
Employers must follow both state and federal laws and, where applicable, follow the law that is in favor of the employee. In this case, that would be Pennsylvania’s laws, which must go into effect first. The state’s legislature is still deliberating on several employment-related laws, including overtime eligibility.
Both the House and the Senate disapproved of the proposed overtime rule changes at first. When the Senate sent a bill to the house on minimum wage, it represented a potential compromise. The regulatory review commission could still approve the overtime wage laws update in 2020. Until then, the federal changes will affect Pennsylvania employees.
First proposed in 2018, the 2020 overtime wage laws update in Pennsylvania would raise the threshold to $875 per week or an annual salary of $45,500. This change would happen over two years, starting in 2021 and completing by 2022. These proposed phases include the following changes to overtime wage laws in Pennsylvania:
Pennsylvania will also decide whether to raise the threshold set by federal standards to reflect what Pennsylvanians are being paid. As a result, the change, if passed, would provide more benefits to many by:
The new overtime wage laws in Pennsylvania also aim to make it more straightforward for employers to know if their employees qualify for overtime. To achieve this, the new regulations would ensure that the duties of certain employees align with federal law. Another component of the proposed overtime wage laws states that the threshold would adjust every three years, unlike the new federal overtime laws.
Refamiliarize yourself with the overtime wage laws on both a federal and state level every year. Ensure you understand your eligibility and that you receive the pay you deserve for overtime hours you work. Check for updates about the Pennsylvania overtime wage laws update in 2020 as the state’s legislature makes its decision.
As you’ve seen in the FLSA definition of overtime and the overtime rate, the Act’s standards consider time worked over 40 hours in a workweek to be overtime. For that time worked, eligible employees should earn compensation one and a half times their standard rate.
The FLSA standards also define positions that are exempt from overtime pay. According to the FLSA’s standards for overtime, those positions include:
Also among FLSA standards for overtime are laws for the following days:
You are only eligible for overtime payment on those days if you are working over the 40-hour mark and are eligible for overtime. The FLSA does not require overtime payment for employees working on weekends or holidays within the 40-hour workweek limit. This standard means that if part of your 40-hour workweek occurs on the weekend, holiday or day of rest, your employer is not required to pay overtime wages. However, if you work 40-hours during the week, work additional time on the weekend and that weekend falls within the workweek, you may be eligible for overtime payment.
In Pennsylvania, the overtime wage standards are the same as the federal standard. Eligible employees working over 40 hours in a workweek must be paid at least one and a half times their standard rate.
If approved in 2020, the standards for overtime will align with federal law, meaning if you are eligible for overtime, you may not experience problems receiving compensation. In 2021 and 2022, however, the Pennsylvania state laws for overtime would have a higher threshold than the federal standard. If you are or become eligible, you must ensure you receive the payment you deserve for any overtime work. Remember that your employer must comply with the law that is most beneficial for employees, which would be Pennsylvania standards if the new regulations pass.
Now that you have a better understanding of the overtime law updates, you may wonder if you’re eligible for overtime payment under new wage laws. While it may seem complicated to determine, you must simply consider your position and your wages.
The most significant contributing factor towards your overtime eligibility is your weekly wage, should the new overtime laws pass. In Pennsylvania, you would be exempt from overtime payment in 2020 if your weekly wage meets or is over the $684 threshold. In 2021, you may be exempt if your weekly wage passes $780, and in 2022 if your weekly wage passes $875. In other words, you could be eligible for overtime payments if your weekly wage is under the threshold and you have worked more than 40 hours in a workweek.
It is worth noting that your type of employment can also impact your eligibility. So how do you know if you are eligible for overtime payment in Pennsylvania based on the kind of work you do? The FLSA and the state consider your duties and the type of job you perform to decide whether you are exempt from overtime wages. You may be exempt from overtime pay if you are employed in any of the following positions:
Determining your overtime eligibility helps you understand your rights as an employee and receive the overtime compensation you deserve. To be exempt, you must meet the salary threshold and fulfill an exemption in the standard duties test. That test determines if your job primarily involves professional, administrative or executive duties, but remember that any of the above positions may also mean you are exempt.
If you have any questions about how your employment status or position impacts your overtime eligibility in Pennsylvania, speak with knowledgeable employment lawyers to know your rights.
As a salaried employee, you should receive the same pay every week regardless of how many hours you work. Whether you work 10, 40 or more hours in a workweek, you will receive the same amount of pay. There are other terms that mean you are in a salaried position, including:
You may wonder if being a salaried employee still makes you eligible for overtime pay. As it is the case with non-salaried positions, your job’s duties and your annual salary would determine your eligibility. Improper deductions by your employer may also make you eligible for overtime pay. If you are a salaried employee and aren’t sure of your overtime eligibility status, speak with experienced employment lawyers in Pennsylvania to understand your rights.
Those who work in positions that meet the requirements for overtime eligibility must stay vigilant over the wages they receive for the hours they work. If you believe you should be paid overtime but your employer has not paid the appropriate wages, you can take legal action. Be sure to file the appropriate claim if you believe you are eligible and have not been paid for your overtime work.
If you believe your employer has not paid you the overtime you are eligible for, make a claim to get the compensation you deserve. Follow the steps below or find answers to your questions about filing a claim for unpaid overtime wages.
While your employer is required to keep records of employees’ time and pay, you should do the same for yourself. Track your hours and make sure you get the compensation you deserve for your time. To maintain accurate and useful records, be sure to:
Keeping track of your earnings, overtime or not, will help ensure you have the information you need if you ever have to make a claim against your employer.
If you are an employee covered by the FLSA, you may be able to make a claim with the Wage and Hour Division (WHD) of the DOL. You can file a claim in person, via email or over the phone, and the process is free. You also have the right to contact an attorney and, if there are violations of the FLSA, you have a right to file your own lawsuit.
The WHD states that all claims will be confidential. It will not disclose your name or the nature of your complaint. If a court orders the WHD to reveal this information, though, it will have to do so. To pursue an allegation, it may also be necessary to release your name or the nature of your claim. You must give permission for the WHD to release these details.
Under FLSA laws, employers cannot discharge an employee or discriminate against them if they have filed a complaint. This rule applies whether the employee is filing a complaint orally or in writing and in cases where the FLSA does not cover an employee’s work.
Under FLSA law, you have two years to make a claim with the DOL or to file your own private lawsuit, though you may have three years if your employer committed a willful violation.
You might be unable to collect any part of a back wage claim if you earned the original wage more than two years before filing a lawsuit. Be sure to file your complaint as soon as possible to ensure that you can collect your compensation.
One of the best ways to ensure you get the compensation you deserve is to get help from employment lawyers in Pennsylvania. Most employees recover wages from unpaid overtime with private claims rather than working with the WHD.
When you work hard and work overtime, you want the wages you’ve earned. Our Pennsylvania employment claim lawyers are ready to help you understand the potential changes to overtime wage laws in Pennsylvania and on a federal level or help you pursue unpaid overtime wages from your employer. At Weisberg Cummings, we have a longstanding focus on employment issues, including wage and hour claims.
Call us at (855) 716-2367 or contact us online for a free consultation if you have a question about overtime laws or believe your employer owes you overtime wages. We’ll help you make a claim for overtime wages not being paid in Pennsylvania to ensure you get the compensation you deserve.
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