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Andrea Kirshenbaum Examines Changes to Overtime Exemptions Under the Pennsylvania Minimum Wage Act for The Legal Intelligencer

In an October 26, 2020 article for The Legal Intelligencer, Andrea M. Kirshenbaum examines recently published rulemaking by the Pennsylvania Department of Labor and Industry (L&I) that updated decades-old regulations applicable to three classes of overtime-exempt employees under the Pennsylvania Minimum Wage Act (PMWA).

The author notes: 

"As they did in anticipation of the 2016 federal Fair Labor Standards Act (FLSA) regulations, Pennsylvania employers should assess whether they have employees making less than $780 per week and determine whether the employees should be considered for reclassification in advance of Oct. 3, 2021, with an understanding that the level will increase to $875 per week in October 2022 and then will be updated again in 2023 based on the formula set forth in the final rule. As the salary level continues to increase, employers seeking to limit overtime worked by newly reclassified non-exempt employees may want to consider hiring additional workers. Employers also should consider whether they would like to include nondiscretionary bonuses to count toward up to 10% of the salary threshold."

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