Original Date: September 3, 2018
As we continue to see changes to exempt and nonexempt in states and cities across the country, the State of Pennsylvania is now proposing new overtime rules. Under the current laws, “employees who are exempt from overtime under the administrative, executive or professional (white-collar) exemptions must be paid on a salary basis at a rate of at least $250 per week ($13,000 per year) and must perform certain duties.”[i] The current salary threshold is well below the federal rate of $455 per week and far below the administrative and executive exemption levels in New York State. According to the Society of Human Resource Management (SHRM), the regulations on exemptions have not been updated since the 1970’s, in the State of Pennsylvania. Continue to monitor for updates on this changing legislation.
Below are the 4 proposed changes for overtime exemptions in the State of Pennsylvania:
- “2019: $610 per week ($31,720 per year).
- 2020: $766 per week ($39,832 per year).
- 2021: $921 per week ($47,892 per year).
- In 2022, and every three years thereafter, the salary threshold would be automatically set to the 30th percentile of weekly earnings for full-time salaried workers in the Northeast census region.”[ii]
The proposal as stands will also change the duties tests, to better align with the FLSA duties tests at the federal leave. The current differences/conflicting areas include:
- “Include language concerning requirements for meeting the white-collar exemptions that appear to impose heavier proof burdens on employers than under federal law.
- Still do not incorporate a computer-professional exemption, which is available under the FLSA.
- Do not recognize a highly compensated-professional exemption.
- Do not harmonize the outside-sales representative exemption with the FLSA.”[iii]
Other areas to remember:
- Pennsylvania minimum wage is $7.25 per hour (the same as federal)
- Federal rate of $455 per week ($26,660 per year); watch for potential changes to this rate
- New York State Administrative and Executive Exemption level changes
- $832.50 per week on and after 12/31/18
- $885.00 per week on and after 12/31/19
- $937.50 per week on and after 12/31/20[iv]
https://labor.ny.gov/formsdocs/wp/Part142.pdf
- NYS Minimum Wage (excluding fast food workers) (don’t forget living wage)
[v]

– Matthew Burr, HR Consultant
[i] https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/pennsylvania-employers-may-see-big-changes-to-overtime-exemptions.aspx
[ii] https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/pennsylvania-employers-may-see-big-changes-to-overtime-exemptions.aspx
[iii] https://www.shrm.org/resourcesandtools/legal-and-compliance/state-and-local-updates/pages/pennsylvania-employers-may-see-big-changes-to-overtime-exemptions.aspx
[iv] https://labor.ny.gov/formsdocs/wp/Part142.pdf
[v] https://www.ny.gov/new-york-states-minimum-wage/new-york-states-minimum-wage
Published by Mathew W. Burr, MJ-LEL, MBA, MHRIR, GPHR, SHRM-SCP, SPHR, CPHR-INT, Chartered CIPD
Mathew W. Burr, MJ-LEL, MBA, MHRIR, GPHR, SHRM-SCP, SPHR, CPHR-INT, Chartered MCIPD
Lean Six Sigma Black Belt
ABOUT:
Matthew Burr has over 18-years of experience working in the human resources field, starting his career as an Industrial Relations Intern at Kennedy Valve Manufacturing to most recently founding and managing a human resource consulting company; Burr Consulting, LLC, Talentscape, LLC and Co-Owner of Labor Love, a Labor, and Employment Law poster printing company. Prior to founding the consulting firm, the majority of his career was heavy industry manufacturing and healthcare. He specializes in compliance auditing, training labor and employment law, conflict resolution, performance management, labor, and employment relations. Matthew has a generalist background in HR and operations, while providing strategic HR and operational solutions to his clients, focusing on small and medium sized organizations. He works as an Adjunct at Alfred State University, Tompkins Cortland Community College, and Montgomery Community College. He successfully designed an HR Concentration in the business management major that aligned with both SHRM and HRCI certifications, providing opportunities for students to sit for both the SHRM-CP and aPHR certifications upon completion of the degree, concentration, and internship hours as an Assistant Professor of Management at Elmira College (Retired January 2022). Matthew is also the SHRM Certification Exam Instructor, with a current pass rate of 92% on the SHRM-SCP and 83% pass rate on the SHRM-CP and a combined 88% on both exams over a 7-year period of instructing the course (Elmira College, Collin College & The College of St. Rose). Matthew works as a trainer at Tompkins Cortland Community College, Corning Community College, Broome Community College, and HR Instructor for Certification Preparation for the Human Resource Certification Institute (HRCI). He also acts as an On-Call Mediator and Factfinder through the Public Employment Relations Board in New York State, working with public sector employers and labor unions.
PUBLICATIONS:
Matthew has over 70+ publications including, American Bar Association (ABA) Experience Magazine, Cornell HR Review, Business Insider, New York State Bar Association (NYSBA), PayScale, Society of Human Resource Management (SHRM), and Expert 360 (in Australia). In early 2017, he published his first book, “$74,000 in 24 Months: How I killed my student loans (and you can too!),” proceeded by his second book, which was published in January 2021, “Slay the Student Loan Dragon: Tips and Tricks on How to Conquer the Student Loan Game” and his most recent book, “Unbox Your HR Career” in July 2023.
VOLUNTEER WORK:
Matthew is currently the New York State Society of Human Resource Management (NYSSHRM) District-Director.
EDUCATION & TRAINING:
Additional Training & Development:
SHRM Workplace Coaching and Mentoring Recertification Program, 2020
SHRM Foundation Employing Abilities @Work Certificate, 2020
SHRM Foundation Veterans at Work Certificate Program, 2018
Delta County Chamber of Commerce: Delta Force Leadership Program, 2013
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Matthew was featured on CNN Money, Fast Company, Fits Small Business, Fox News, Magnify Money, Monster.com, My Twin Tiers, Namely, Student Loan Hero, Smart Sheet and CEO Blog Nation, Human Resource Certification Institute (HRCI), Society of Human Resource Management (SHRM).
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