HARRISBURG — Department of Labor & Industry Secretary Jerry Oleksiak is reminding employees and businesses about a new federal law that will make 61,000 workers in Pennsylvania newly eligible for overtime pay of time and a half beginning Jan. 1, 2020. Oleksiak is also urging Pennsylvania lawmakers to do more for all our hardworking men and women, who will continue to earn a low minimum wage of $7.25 in the new year.

“This new federal law means some of our workers can begin earning the overtime pay they deserve, but far too many are struggling to make ends meet because of Pennsylvania’s stagnant minimum wage. It is time for the commonwealth’s lawmakers to recognize the value of our hardworking men and women and increase their wage,” said Oleksiak. “Every one of our neighboring states has invested in their workers by boosting the minimum wage. It is unconscionable that Pennsylvania has not done the same in more than a decade.”

“Senate Bill 79 would give nearly 400,000 Pennsylvanians a much needed first step towards a more secure financial future,” added Oleksiak. “The bill had overwhelming bipartisan support in the Senate, and I am disappointed that the House failed to consider this compromise legislation prior to leaving for the holiday break. Pennsylvania’s workers deserve more.”

An increase in the minimum wage will give working Pennsylvania families a better livelihood, save tax dollars by reducing the number of individuals and families receiving public assistance, and strengthen local economies by increasing workers’ paychecks. The increase in earning thresholds under the new federal overtime regulations is a step in this direction, ensuring that more employees who work overtime are fairly and fully compensated for their labor.

The new federal overtime rules, under the U.S. Department of Labor, go into effect on New Year’s Day, Jan. 1, 2020.

Who is eligible for overtime?

  • With a few exceptions, all hourly employees who work more than 40 hours per week;
  • Most salaried employees who work more than 40 hours per week and earn less than $684 per week/$35,568 per year are eligible for overtime, regardless of their job duties; and
  • Most salaried employees who are not engaged in an executive, administrative, or professional capacity, regardless of how much they are paid.

Who is not eligible for overtime?

  • Salaried employees who are engaged in an executive, administrative, or professional capacity and make more than $35,568 per year; and
  • Other occupations specifically exempted by the minimum wage act.

For more information on the new overtime rule, call 1-800-932-0665 (L&I’s Bureau of Labor Law Compliance), email RA-LI-SLMR-LLC@pa.gov or visit dli.pa.gov.