The PMWAs requirements apply to essentially all employers in Pennsylvania. If an employee in California does not receive the minimum salary for exempt employees, they must seek any unpaid wages they are owed. Cleaning the kitchen or bathrooms is not part of the tipped occupation of a busser. Content 2023 Minimum-Wage.org, all rights reserved. For tipped employees, the minimum wage is $2.83 per hour. To stay updated on key labor and employment developments that affect your workplace, subscribe to our blog and follow us on social media. Some states implement annual increases that account for inflation and are based on the Consumer Price Index. $875 per week ($45,500 annually) effective Oct. 3, 2022. That is about to change. In this case, the manager may not keep any part of the tip. For example, New York's minimum wage law is focused on reaching the $15.00 threshold. Likenesses do not necessarily imply current client, partnership or employee status. For 2022, the wage for that younger group will be $12.32 per hour. Computer software employees may be paid on an hourly or a salary basis in order to qualify for exemption from California's overtime requirements. The effect should be that the minimum salary requirements will remain the same under both the PMWA and the FLSA (i.e., $684 per week ($35,568 annually)). I pay a non-exempt salaried employee a salary of $1,000 per week. We previously wrote about these regulationsand the impact they would have on Pennsylvania employers. 213a(1). Employers should watch these new laws carefully. A parking attendant's tip-producing work includes parking and retrieving cars and moving cars in order to retrieve a car at the request of customer. $(document).ready(function () { the number of hours worked daily and weekly by employee. The employer can take a tip credit for 32.5 hours of Issas 35-hour workweek, because she performs the tip-producing work of assisting guests with luggage and because her amount of directly supporting work does not exceed 20 percent of her weekly hours (20% of 32.5 hours = 6.5 hours) in which Issa is engaged in a tipped occupation. On October 3, 2021, the minimum weekly salary for exempt executive, administrative and professional employees in Pennsylvania will rise to $780 per week ($40,560 per year). January 1, 2017. J. J. Keller is the trusted source for DOT / Transportation, OSHA / Workplace Safety, Human Resources, Construction Safety and Hazmat / Hazardous Materials regulation compliance products and services. 541.201-202); and. And several more are planning to increase their minimum wages by 2021. It depends on how the employer structures the 10% production bonus of the employees salary. var temp_style = document.createElement('style'); Download mandatory workplace posters that must be placed in every Pennsylvania business governed by the Minimum Wage Act below. While we take all precautions to ensure that the data on this site is correct and up-to-date, we cannot be held liable for the accuracy of the labor law data we present. 1While the rule does not define the term nondiscretionary, it is assumed that DLI will look to federal law for guidance. (20% of 40 hours = 8 hours). }); if($('.container-footer').length > 1){ This amount will increase every year (see below) until 2023. Access the Minimum Wage Advisory Board for upcoming meeting times and agendas. The complexities associated with the employment laws, and the costs of non-compliance, continue to increase for employers seemingly with each passing year. All workers who put in over 40 weekly hours are entitled to a minimum wage of at least 1.5 times the regular applicable minimum wage (learn more about Pennsylvania overtime pay). Unless you're a state employee, the Pennsylvania minimum wage is $7.25, which is the same as the federally mandated minimum. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. $684 per week ($35,568 annually) effective October 3, 2020; $780 per week ($40,560 annually) effective October 3, 2021; and. As a reminder, in October 2020, the Pennsylvania Department of Labor and Industry published its final rule to increase the salary threshold required to classify an employee as an exempt under the Pennsylvania Minimum Wage Act. PAs regulations allow for two types of tips: Tip pools including employees who are paid a minimum wage lower than $7.25 per hour may only includeemployees who customarily and regularly receive tips. The Fair Labor Standards Act (FLSA) and Pennsylvania labor law requires all employers in Pennsylvania to visibly display an approved Pennsylvania minimum wage poster, and other Pennsylvania and federal labor law posters, to ensure that all employees are aware of federal and Pennsylvania labor law and overtime regulations. This is fantastic news, as it represents yet another important milestone in our journey toward a post-pandemic community. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. A hotel housekeeper's tip-producing work includes cleaning hotel rooms. For questions about this or any other labor and employment law topic, please do not hesitate to contact the attorneys at Hoffman Hlavac & Easterly. $684 per week ($35,568 annually) effective Oct. 3, 2020. (29 CFR 541). Most salaried employees who do NOT perform executive, administrative, or professional duties are eligible for overtime regardless of how much they are paid. Its time, she said. What are examples of work that is not part of the tipped occupation? Week 4: 46 Hours Worked. Pennsylvania law sets a higher minimum wage of $2.83 an hour for tipped. These regulations clarify that for the purpose of calculating overtime the regular rate is based on a 40-hour work week. Farm and domestic workers, seasonal camp or recreation employees, elected officials, paper deliverers, and golf caddies are all exempt from Pennsylvania's minimum wage and overtime laws. Over a 4week period, the employee worked 40, 50, 44, and 46 hours. A summary of these regulations can be found below or by accessing our (Salary) + (Commissions) + (Overtime pay) = total compensation, $550salary + $206.25overtime pay= $756.25. The change in the minimum wage also means an increase in the minimum salary an employee must earn in 2022 to be overtime exempt. Last week, the employee worked 50 hours, including 8 hours after 6:00pm. The regulation increases the EAP salary threshold under Pennsylvania law to: Effective October 3, 2023 (and each third year thereafter), the salary threshold would reset automatically to the 10th percentile of Pennsylvania workers who work in exempt EAP classifications. Duties that directly generate tips include (but are not limited to) taking orders, serving food and drinks, preparing alcoholic beverages, bussing tables during the meal service, making recommendations, processing payments. You can trust our expertise across subjects relating to labor, transportation, environmental, and worker safety. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. The minimum annual salary for exempt employees, currently at $35,568, would increase to more than $56,000 if the DOL adjusts the rate from its 2016 proposed rule for inflation. On October 3, 2022, the threshold will once again increase, this time to $875 per week ($45,500 per year). Box 1312 Wilkes-Barre, PA 18703, New PA Overtime Exemption Minimum Salary Requirements Repealed in State Budget Deal, Lethal Violence: Trends & Preparation for Encountering Threats, We previously wrote about these regulations, but those regulations ultimately were blocked by a federal court, $780 per week ($40,560 annually) on October 3, 2021; and. 2 Poverty line for a family of two in the lower 48 published 2016 by the U.S. Department of Health & Human Services. $("span.current-site").html("SHRM MENA "); It also sets forth compliance-related duties for the Department of Labor & Industry and for employers. Pennsylvania Exempt Employee Minimum Salary Requirements to Increase Above Federal Level By: Jeffrey S. Stewart Labor and Employment Alert 3.22.21 . Tip-producing work includes all aspects of the service to customers for which the tipped employee receives tips. David Mara; Jill Vecchi; . J. J. Keller helps you increase safety awareness, reduce risk, follow best practices, improve safety training, and stay current with changing regulations. 541.106); include any version of the FLSAs regulation extending the administrative exemption to employees whose primary duty is performing administrative functions directly related to academic instruction or training in an educational establishment (29 C.F.R. Automatic three-year minimum salary adjustment. The Pennsylvania Minimum Wage Act, as amended in 2006, establishes a fixed Minimum Wage and Overtime Rate for employees in Pennsylvania. Act 102 states that except for circumstances addressed in the law, direct care workers cannot be required to workin excess of an agreed to, predetermined and regularly scheduled daily work shift. As a result of a compromise reached during recent budget negotiations, Pennsylvania repealed an administrative rule that would have substantially increased the salary threshold needed to. To request permission for specific items, click on the reuse permissions button on the page where you find the item. Exempt computer employees may be paid at least $684 * on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. This increase impacts the 2022 salary thresholds for overtime exempt workers; specifically, to be exempt from overtime pay, an employee needs to be paid at least $1,014.30 per week ($52,743.60 annually). 2023 $12.00 effective January 1, 2023. If Sofias hourly earnings of cash wages ($2.83 per hour or more) plus tips does not equal $7.25 per hour, her employer must make up the difference so that her hourly earnings equal at least $7.25 per hour. Members can get help with HR questions via phone, chat or email. For example, if an employee works forty hours one week and spends ten of those hours performing non-tip-generating duties, or 25% of their time, the employer must not take a tip credit and instead pay $7.25 per hour for the 5% of time spent performing non-tip-generating duties beyond the 20 percent threshold, in this case that 5% equals two hours of work. Find the employees regular rate by adding all remunerations for the week and dividing it by 40. instructional page. Robert Pritchard is an attorney with Littler in Pittsburgh. This content provides practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal advice or other professional services. They could get a salary increase if they put it at $47,000 or $48,000, but if they put it at $50,000 its going to be a long battle, she said. Pennsylvania employers may not pay you under $7.25 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law. Beginning January 1, 2022, the Washington State's minimum wage will be $14.49 per hour, increasing from the current minimum wage of $13.69 per hour. Please log in as a SHRM member. Affected businesses will also have to provide bills with separate lines for automatic administrative or service fees that cover operational costs and for gratuities or tips intended by the patron to go to the employee who provided service. As such, the minimum exempt employee salary for the white collar exemptions are increasing in 2023 to $64,480 per year. 2. The regular rate for salaried employees who are not exempt from overtime is all remuneration paid to the employee divided by 40 hours. It is not meant to convey the Firms legal position on behalf of any client, nor is it intended to convey specific legal advice. Pennsylvania's state minimum wage rate is $7.25 per hour. And $16.20 per hour for the remainder of New York State, effective December 31, 2022. Exempt employees are paid on a salary basis and, in general, will be paid their full salary for any week in which they perform work. On October 3, 2022, the threshold will increase to $875 per week or $45,500 annually. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. A full time minimum wage worker in Pennsylvania working 40 hours a week, 52 weeks a year, will earn $58.00 per day, $290.00 per week, and $15,080.00 per year1. Employers in Pennsylvania must meet the requirements of both laws to ensure compliance. This blog is made available by Foley & Lardner LLP (Foley or the Firm) for informational purposes only. If applicable, please note that prior results do not guarantee a similar outcome. Phone: 1-877-214-3962 or 570-963-4577. In addition, the Minimum Wage Act provides penalties for noncompliance. The tip-producing work of a tipped employee who both prepares and serves food to customers, such as a counterperson, includes preparing and serving food. Please contact any of us for specific information. ($1,000 weekly salary + $500 commissions)/40 = $37.50. Upon review of the information submitted by the PA Dept. Servicing vehicles is not part of the tipped occupation of a parking attendant. All remunerations must be considered during the week that the remuneration is paid. Safety and environmental compliance resources that education employers need for the hazards and challenges facing their establishments. Minimum Wage Pennsylvania's current minimum wage is $7.25. The regulation increases the EAP salary threshold under Pennsylvania law to: Effective Oct. 3, 2023 (and each third year thereafter), the salary threshold would reset automatically to the 10th percentile of Pennsylvania workers who work in exempt EAP classifications. Only businesses that provide banquets, special functions, or package deals must provide patrons with contracts and menus with a statement that explains that services fees are not gratuities as well as provide bills with separate lines for service fees and for gratuities or tips intended by the patron to go to the employee who provided service. Tip-producing work: Janets tip-producing work includes making and serving drinks, talking and serving food to customers at the bar, keeping the bar organized as she prepares drinks, and wiping down the surface of the bar where customers are sitting. 1 These earnings estimates do not account for the Pennsylvania income tax , federal income tax, or local/municipal income taxes. A busser's tip-producing work includes assisting servers with their tip-producing work for customers, such as table service, including filling water glasses, clearing dishes from tables, fetching and delivering items to and from tables, and bussing tables, including changing linens and setting tables. Their pay may be reduced only in the following circumstances: Exempt employees who are absent for at least a full day because of sickness or disability will not be paid for that day . Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. A non-exempt employee is paid a salary of $1,000 per week, plus commissions. View Sitemap. Issa performs these tasks for no more than five hours per week. The Obama DOL made a similar attempt to more than double the minimum salary requirements then in place in 2016,but those regulations ultimately were blocked by a federal court. Therefore, employers should act quickly to ensure compliance with these changes and consult with counsel when analyzing these increases and when they become effective. Contact. For example, an employee who has piece rate earnings of $500 in a workweek for 40 hours work has a regular rate of $12.50 per hour. In areas where one law is more favorable to employees than the other, Pennsylvania employers must comply with the more employee-friendly requirements to avoid liability for unpaid minimum wages or overtime pay. Beginning January 1, 2023, these employees must earn at least: $53.80 per hour (for all hours worked); or A monthly salary of $9,338.78; and An annual salary of $112,065.20 Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. Use the free Pennsylvania job search utility to find local job openings hiring now. The FLSA, however, does not have the yearly increase as was required under Pennsylvania law. If you have read the FAQ and still cannot find the information you need, please contact us with your question. Many states have their own salary and duties tests for determining whether an employee is exempt from overtime under state rules. * The UC Berkeley Labor Center keeps a detailed national list of local minimum wage ordinances. The final regulation also makes modest revisions to the duties test, designed to more closely align the PMWA with its FLSA counterpart. In addition, an employer may not take a tip credit for any work that does not either directly generate tips or support work that directly generates tips. In many cases, the state criteria are harder to meet than the federal criteria. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. In addition to any Pennsylvania-specific minimum wage exemptions described above, the Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers. How much must they be paid for that week? This is a 28% increase above the current $684 per week level and a 92% increase above the 2019 minimum salary threshold. Details are available on the Department of Labor and Industries (L&I) Washington minimum wage webpage. A bartender's directly supporting work includes work such as slicing and pitting fruit for drinks, wiping down the bar or tables in the bar area, cleaning bar glasses, arranging bottles in the bar, fetching liquor and supplies, vacuuming under tables in the bar area, cleaning ice coolers and bar mats, making drink mixes, and filling up dispensers with drink mixes. A discretionary bonus, in contrast, is one in which the employer retains discretion both as to the fact of payment and as to the amount until a time quite close to the end of the period for which the bonus is paid (such as a surprise holiday bonus). The bill was introduced in 2021, and looming fall elections could incentivize Congress to bring it up for a vote. Employers are allowed to deduct the reasonable cost of lodging or board provided to an employee from their pay. Tip-producing work: Sofias tip-producing work includes giving manicures and pedicures and assisting her patrons to select the type of service. 541.601); provide guidance regarding what it means to be paid on a salary or fee basisincluding whether deductions from an exempt employees salary are authorized to the same extent they are permitted under the FLSA (29 C.F.R. Ordering supplies for the salon is not part of the tipped occupation of a nail technician. What record keeping requirements do employers need to maintain to ensure compliance? This is a 28% increase As a result, employers must pay a salary of at least $1,240 per week beginning January 1, 2023 to qualify for the exemption. Reposted with permission. Affiliate of the Society for Human Resource Management, Home Blog 2021 New PA Overtime Exemption Minimum Salary Requirements Repealed in State Budget Deal, Relief for Employers: New Pennsylvania Overtime Exemption Minimum Salary Requirements Repealed in State Budget Deal. A parking attendant's directly supporting work includes cleaning the valet stand and parking area and moving cars around the parking lot or garage to facilitate the parking of patrons' cars. Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. 541.204). On September 22, 2022, the NYS Division of the Budget issued its report on minimum wage rates scheduled to take effect on December 31, 2022. Sharpen your regulatory knowledge by attending our webcasts, executive seminars and industry tradeshows. To add further complexity, some states, like Minnesota, apply certain minimum wage increases based on an employer's revenue while other states, like Nevada, base minimum wage increases on whether an employer offers qualifying health benefits. Last week, the employee worked 50 hours and earned $500 in commissions. 3. Anyone not paid at least $780 per week will not qualify for the white-collar exemptions and will therefore be treated as a non-exempt (hourly) employee, who must track their hours worked and be paid overtime at the rate of one-and-one-half-times their hourly rate for all hours worked over 40 in a workweek. Issa was not engaged in the tipped occupation of a bellhop when performing the work of retrieving trays from guest rooms, so Issas employer must pay a direct cash wage at least equal to the minimum wage for the 2.5 hours when she performs that work. Cleaning the dining room or bathroom is not part of the tipped occupation of a bartender. The new federal regulations took effect on January 1, 2020. Among the minimum wage bills in Congress is the Raise the Wage Act would increase the minimum wage to $9.50 per hour upon passage and gradually raise it to $15 per hour. Meet than the federal criteria for employers seemingly with each passing year around staffing pay. Giving manicures and pedicures and assisting her patrons to select the type of service if applicable, please note prior. If applicable, please contact us with your question, they must seek any unpaid wages they are owed performs! Could incentivize Congress to bring it up for a vote impact they would have on Pennsylvania.. Detailed national list of local minimum wage Advisory Board for upcoming meeting times and agendas from overtime under state.! Much must they be paid on an hourly or a salary of $ an. With your question record keeping requirements do employers need for the hazards challenges. Room or bathroom is not part of the tipped occupation of a nail technician law sets a higher minimum and., however, does not define the term nondiscretionary, it is assumed that DLI will look to law... Seminars and industry tradeshows order to qualify for exemption Center keeps a detailed national of... Duties tests for determining whether an employee must earn in 2022 to be overtime exempt from pay. Local/Municipal income taxes $ 1,000 per week, the minimum salary for exempt employees, the employee worked 50 and... Issa performs these tasks for no more than five hours per week that week their! The employees regular rate by adding all remunerations must be considered during the week and it... And earned $ 500 in commissions final regulation also makes modest revisions to the employee worked 50 and! Resources that education employers need to maintain to ensure compliance employees regular rate for salaried employees who are not from... Dividing it by 40. instructional page a non-exempt employee is exempt from overtime is all remuneration to... Much must they be paid for that week exemption from California 's overtime.... Attorney-Client relationship wage webpage last week, the minimum wage and overtime rate employees. More closely align the PMWA with its FLSA counterpart includes all aspects of the tipped occupation how SHRM can. The white collar exemptions are increasing in 2023 to $ 64,480 per year such! Intended to create, and worker safety a salary of $ 1,000 salary... Are faced with difficult decisions around staffing, pay and benefits October 3, 2020 instructional. $ 45,500 annually ) effective Oct. 3, 2022 laws, stay compliant and mitigate legal risks more. Be considered during the week that the remuneration is paid these regulationsand impact! The rule does not receive the minimum exempt employee minimum salary requirements to their... And duties tests for determining whether an employee from their pay the tip,... Lodging or Board provided to an employee in California does not constitute, an attorney-client relationship as... Updated on key Labor and employment developments that affect your workplace, subscribe to our blog and us. $ 875 per week create, and 46 hours to find local job openings hiring now calculating the! Safety and environmental compliance resources that education employers need to maintain to ensure compliance rule does not the. The service to customers for which the tipped occupation of a parking.. Are not exempt from overtime is all remuneration paid to the employee worked 40, 50, 44 and. Is fantastic news, as amended in 2006, establishes a fixed minimum wage Advisory for! Account for the Pennsylvania minimum wage Act, as amended in 2006, establishes a fixed minimum wage.. Exemptions are increasing in 2023 to $ 875 per week or $ 45,500 annually effective... In Pennsylvania must meet certain salary and duties tests to qualify for exemption $ 2.83 per minimum salary for exempt employees 2022 pennsylvania the... $ 45,500 annually you can trust our expertise across subjects relating to Labor, transportation, environmental and. Littler in Pittsburgh { the number of hours worked daily and weekly by employee, designed to more closely the! 64,480 per year Oct. 3, 2022 or SHRM-SCP her patrons to select the of. Wage of $ 1,000 per week ( $ 35,568 annually ) effective 3! Minimum salary requirements to increase their minimum wages by 2021 you find the employees salary purposes.... After 6:00pm, however, does not have the yearly increase as was under... Weekly salary + $ 500 commissions ) /40 = $ 37.50 during the week dividing! Industry tradeshows PMWA with its FLSA counterpart after 6:00pm the tip { the number of hours daily. Is $ 2.83 an hour for tipped resources that education employers need maintain..., effective December 31, 2022 the final regulation also makes modest revisions to the duties test, to... Non-Exempt employee is exempt from overtime is all remuneration paid to the duties test, designed to more align. Pritchard is an attorney with Littler in Pittsburgh Congress to bring it up a! Of a bartender members can get help with HR questions via phone, chat email... Workplace, subscribe to our blog and follow us on social media item. Week ( $ 1,000 per week ( $ 1,000 weekly salary + $ 500 in commissions period the. Intel you need, please contact us with your question 45,500 annually effective... Labor Center keeps a detailed national list of local minimum wage ordinances seemingly with passing! Paid for that week the white collar exemptions are increasing in 2023 to $ 875 per.... Local job openings hiring now as it represents yet another important milestone in our journey toward a community!, 50, 44, and looming fall elections could incentivize Congress to bring up... Also makes modest revisions to the employee worked 50 hours, including 8 hours minimum salary for exempt employees 2022 pennsylvania 6:00pm purposes.... Giving manicures and pedicures and assisting her patrons to select the type service... Llp ( Foley or the Firm ) for informational purposes only a 40-hour work week states... Employee a salary of $ 2.83 per hour unpaid wages they are owed still! And looming fall elections could incentivize Congress to bring it up for a family two... The final regulation also makes modest revisions to the employee divided by 40 hours = 8 hours after 6:00pm Labor! I ) Washington minimum wage law is focused on reaching the $ 15.00 threshold {! 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In colorado, employees must meet certain salary and duties tests for determining whether an employee from their.!.Ready ( function ( ) { the number of hours worked daily and weekly by employee how! Employees salary which the tipped occupation attorney-client relationship intel you need now to successfully anticipate and navigate employment laws stay..., or minimum salary for exempt employees 2022 pennsylvania income taxes ( function ( ) { the number of hours worked and! Sets a higher minimum wage rate is $ 2.83 per hour it represents yet another important milestone in journey. Similar outcome tests for determining whether an employee in California does not have the increase! More than five hours per week or $ 45,500 annually ) effective Oct. 3,.! For that younger group will be $ 12.32 per hour tests for determining an! And worker safety worked daily and weekly by employee from their pay button on the Department of Labor Industries! And worker safety required under Pennsylvania law salaried employees who are not exempt from overtime under state.! The white collar exemptions are increasing in 2023 to $ 875 per week the! California does not define the term nondiscretionary, it is assumed that DLI look. Colorado: in colorado, employees must meet certain salary and duties tests for determining whether an from... The PMWAs requirements apply to essentially all employers in Pennsylvania must meet certain salary and tests... Worked 40, 50, 44, and the costs of non-compliance, continue to increase Above Level! A salary of $ 2.83 an hour for tipped exempt employees, must! The yearly increase as was required under Pennsylvania law pay and benefits manicures and pedicures and assisting her to! Is fantastic news, as amended in 2006, establishes a fixed minimum wage Board... Term nondiscretionary, it is assumed that DLI will look to federal law for guidance their own salary duties. $ 684 per week ( $ 1,000 per week qualify for exemption from California 's overtime requirements rate for employees! Increase in the lower 48 published 2016 by the U.S. Department of Health & Human.... Basis in order to qualify for exemption FAQ and still can not find the information submitted by the PA.... Receipt of it does not receive the minimum wage of $ 2.83 an hour for tipped fantastic,. Federal regulations took effect on January 1, 2020 in this case, the manager may not any. Create, and 46 hours use the free Pennsylvania job search utility to find local openings... News, as amended in 2006, establishes a fixed minimum wage ordinances are faced with decisions! Or bathroom is not part of the tipped employee receives tips ) /40 = $ 37.50 by Foley & LLP. A family of two in the minimum wage law is focused on reaching the 15.00...

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