The United States Department of Labor (USDOL) published its revised final regulations concerning its overtime requirements under the FLSA on April 23, 2004. (29 CFR 541). The new federal regulations take effect on August 23, 2004. The new federal overtime regulations revise the types of workers eligible for overtime and set a higher salary cap for eligible workers (See:
www.dol.gov).
Impact on Pennsylvania Employers
Pennsylvania employers must still comply with the overtime requirements of Pennsylvania's Minimum Wage Act (35 P.S. § 333.101 et seq.) and regulations. (34 Pa. Code § 231.1 et seq.). Pennsylvania’s existing state requirements are still in effect. Pennsylvania’s current requirements are substantially similar to the earlier federal standards. Employers must follow Pennsylvania’s regulations even if these rules are more stringent for employers than the revised federal requirement. Federal law (29 USCS § 218) and the new federal rules (29 C.F.R. 541.4) specifically state that federal law does not affect enforcement of state overtime requirements, such as Pennsylvania's requirements.
The USDOL enforces Federal rules contained in the FLSA and related regulations. The Pennsylvania Department of Labor and Industry (L&I) enforces Pennsylvania’s minimum wage requirements contained in the Minimum Wage Act and related regulations.
Differences Between Overtime Requirements
Current Pennsylvania law and regulations requiring overtime payment remain in effect and will be enforced regardless of the changes to the federal rules. For example, Pennsylvania does not allow an employer to restrict overtime if an employee earns a certain salary. The revised federal regulations allow an employer to restrict overtime if an employee is earning over $100,000 annually. However, this federal exclusion does not apply to Pennsylvania employees because of Pennsylvania law.
Pennsylvania employers must be aware that the federal or Pennsylvania overtime provision that provides for the greater benefit to the employee is the standard that will be enforced. An employer must pay overtime if the new Federal rules or Pennsylvania law requires overtime payment.