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Pennsylvania prepares on its own to address overtime salary test

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in Employment Law,Human Resources

By Kali T. Wellington-James and Tracey E. Diamond, Pepper Hamilton

Properly classifying an employee’s status under the Fair Labor Standards Act has been a constant source of litigation over the last 10 years. The issue: Was an employee improperly classified as exempt instead of nonexempt? At stake: The possibility of being awarded back overtime pay for hours worked in excess of 40 per week.

Some of these may be legacy claims, lingering as the economy makes its halting recovery from the Great Recession.

Another potential source of these claims, however, may be because of an outdated test used to determine whether an employee is entitled to overtime pay.

No change in OT eligibility

Currently, under both federal and Pennsylvania law, an employee must meet the salary basis test and the duties test to be exempt from overtime under the FLSA’s white collar exemptions. That means they must earn more than a certain dollar am...(register to read more)

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