New Overtime Pay Rules Approved In PA: 82,000 More Will Qualify

HARRISBURG, PA —Pennsylvania is nearing a change in its overtime regulations, after a new measure approved by the state of Pennsylvania will allow tens of thousands of additional workers to receive overtime pay benefits.

The decision was approved Friday by the Independent Regulatory Review Commission. It was strongly backed by Gov. Wolf and his administration and had been proposed by the Department of Labor and Industry.

The Attorney General must approve the final regulation before it can be published in the Pennsylvania Bulletin and go into effect later this year.

Once approved, a total of 82,000 will see additional overtime pay under the new plan, officials say.

“This is an important victory for thousands of workers,” Gov. Wolf said in a statement. “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 This is absolutely the right thing to do.“Today’s approval of my plan will modernize our outdated overtime rules so more people are eligible for time-and-a-half pay.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.”

The regulations require overtime pay to full-time salaried workers in executive, administrative, and professional jobs if they make less than $45,500, according to information issued by Gov. Wolf's office.

The increases will be rolled out by 2022 in three steps, starting with those who make under $35,568 annually in 2020, under $40,560 by 2021, and under $45,500 annually by 2022.

From 2023 onward, the threshold will automatically adjust every three years.

The approval comes as Democrats continue to attempt to raise the minimum wage from $7.25 to $15 in Pennsylvania.

“There are far too many Pennsylvanians working full-time and multiple jobs who are still unable to support themselves and their families," Gov. Wolf added.

The plan has come under fire from conservative opponents who argue it will make it more difficult for businesses to hire and retain employees.

The Commonwealth Foundation argues that businesses will simply offset the increases by lowering wages, citing an example from Japan and a court case involving tech-support workers at IBM.

Proponents of the plan argue it will ultimately save taxpayers money, as more equitable wages will mean social programs that support the impoverished won't need to do as much of the lifting.