Note: This is just a reminder; no changes have been made to date.

Over the past week, RCPA has received some inquiries about the Pennsylvania Department of Labor & Industry (L&I) final rule regarding overtime pay under the Minimum Wage Act. Back in late fall and early winter, RCPA sent out notices informing RCPA members that the new rule would become effective January 1, 2021. RCPA is sending out this alert as a reminder to members. To view the new rule in its entirety, please visit the Pennsylvania Bulletin’s website.

The highlights of L&I’s final rule are as follows:

• Raises the salary threshold.
• Automatic increases in 2021, 2022 and 2023 and every three years thereafter (i.e. after 2023 the next increase will occur in 2026).
• The employee still must meet both the salary test and the duties test to qualify as exempt.

If you recall, the Federal Department of Labor published its final rule on Friday, September 27, 2019. The Federal rule:

• Raised the salary threshold from the current $23,660 ($455/week) to $35,568 ($684/week);
• Was effective January 1, 2020;
• Includes no automatic updates or changes to the duties test; and
• Allows nondiscretionary bonuses, incentive payments, and commissions to satisfy up to 10 percent of the salary requirement.

Please contact Jack Phillips, RCPA Director of Government Affairs, with any questions.