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30 Oct

October 2020 Pennsylvania HR Legal Updates

Posted at

3:25pm

in

Pennsylvania Increases White Collar Exemption Salary Threshold

What happened?
The Pennsylvania Department of Labor and Industry published its final rule to substantially increase the salary threshold for qualifying as an exempt Executive, Administrative, and Professional (EAP) employee under the Pennsylvania Minimum Wage Act.

What are the details?
The regulation increases the EAP salary threshold under Pennsylvania law to:

  • $684 per week ($35,568 annually) effective October 3, 2020;
  • $780 per week ($40,560 annually) effective October 3, 2021; and
  • $875 per week ($45,500 annually) effective October 3, 2022.

The regulation also includes other changes to the exemption, including new changes to the duties test and allowing employers to give up to 10% of the employee’s salary requirement as nondiscretionary bonuses, incentive, and commissions that are paid annually or more frequently. 

An article covering the final rule in more depth can be found here.

What do employers need to do?
Employers in Pennsylvania should consult their employment attorney if they think they may be out of compliance, to review their options. Otherwise, they should consult with their payroll specialist to look at their options to increase necessary worker wages to maintain existing exemption status on select employees.

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