Exemptions: Overtime & minimum wage - Pennsylvania

Summary of differences between federal and state regulations

Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees.

To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations.

These salary minimum does not apply to outside sales employees, teachers, and employees practicing law or medicine. 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.

Pennsylvania exempts the following individuals from minimum wage and overtime provisions: farm workers, domestics, newspaper carriers, those in executive, administrative or professional positions (including teachers and administrators in elementary and secondary schools), golf caddies, some switchboard operators, those holding an elective office.

In addition, the following are exempt from overtime provisions:  seamen, sales people, partsmen and mechanics working at car, truck, farm, trailer or aircraft dealerships, taxi drivers, announcers, news editors and chief engineers at radio or TV stations, maple sap processors, movie theatre workers, and motor carrier employees.

Pennsylvania says that executive, administrative, and professional employees cannot spend more than 20 percent of their time performing duties that do not qualify for the exemption (or 40 percent for executive and administrative employees in retail and service establishments). Outside sales employees must be away from the employer's place of business at least 80 percent of the working time.

The state does not reference an exemption for computer employees, nor for “highly compensated employees” earning over $107,432 per year, and may not recognize either category.

State

Contact

Pennsylvania Department of Labor and Industry

Regulations

The Minimum Wage Act of 1968, P.L. 11, No. 5, Section 5. Exemptions

Regulations for Minimum Wage, §231.81. Definitions; 231.82. Executive; 231.83. Administrative; 231.84. Professional; 231.85. Outside salesman

Federal

Contact

The Department of Labor is the federal agency that monitors hours worked.

Regulations

Regulations for exempt employees can be found in CFR 29 Part 541, Defining And Delimiting The Exemptions For Executive, Administrative, Professional, Computer And Outside Sales Employees