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Pennsylvania Repeals Salary Increase for Overtime Exemptions

Last year, Pennsylvania’s Department of Labor & Industry issued regulations to increase the minimum salary threshold for the administrative and professional exemptions to $40,560 per year beginning on October 3, 2021.

On July 9, 2021, the intended law for increasing of the minimum salary level was repealed via a budget bill. Thus, the minimum salary threshold requirements will remain the same as those under the federal Fair Labor Standards Act (FLSA), which is currently $684 per week or $35,568 annually.

Employers should still regularly review their employee classification status to ensure exempt employees are properly classified under both federal and state law. Being paid a salary basis alone does not qualify employees for an overtime exemption. An employee’s job duties must satisfy every term and condition of an exemption for the exemption to apply.

How HR Works Can Help 

HR Works can conduct FLSA assessments to help identify areas of risk, as well as provide recommendations for addressing potential misclassifications. To learn more about these services and how to leverage our compliance expertise and support, please contact us at or call 1-877-219-9062.  

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.