Salary Threshold for Exemption is Repealed in Pennsylvania
Update Applicable to:
All employers in Pennsylvania.
On July 9, 2021, Governor Tom Wolf agreed to repeal new exempt executive, administrative and professional (EAP) salary thresholds with HB 336.
What are the details?
The bill, effective September 7, 2021, repealed the Pennsylvania Department of Labor and Industry’s (DLI’s) previously enacted rule under the Pennsylvania Minimum Wage Act (PMWA) that substantially increased the salary threshold needed for an employee to qualify as an exempt EAP employee in an agreed exchange to provide additional funding for schools. The standards will restore to those prior to 2020 and the entire regulatory framework that defines the EAP exemptions that have been in effect since 1977.
At this time there is no regulatory definition to confirm the definition of an exempt EAP employee, but the PMWA statute continues to provide that bona fide EAP employees remain exempt.
The bill can be read here.
An article on the law can be read here.
What do employers need to do?
Employers should familiarize themselves with the law and the repeal of the previous rule on EAP employee exemption thresholds to update any applicable workplace policies.