The PA Department of Labor & Industry recently issued a series of FAQ documents to help employers comply with new rules dictating overtime pay for salaried employees and various changes to tipped worker regulations, all scheduled to go into effect on August 5, 2022.

The Department proposed these regulatory changes in Nov. 2021 and the PA Chamber offered extensive feedback to the Department and state Independent Regulatory Review Commission, which is responsible for approving regulations. IRRC approved the regulations in March after the Department adopted a number of PA Chamber recommendations including agreeing to conduct outreach sessions before the rules take effect and publishing educational information to help employers with compliance. The Department also agreed to extend the effective date from 60 to 90 days to provide an additional month to educate the public and employers.

The regulation updates the definition of “regular rate” as it relates to salaried employees whose overtime pay is determined by the fluctuating work week method, clarifying that the regular rate is based on a 40-hour work week to calculate overtime. While the PA Chamber had advocated for Pennsylvania to mirror the more flexible federal rule, the clarity provided this rule is preferable to the current uncertainty.

The new regulation also adjusts a number of rules related to tipped workers, including related to eligibility standards, tip pooling and credit card fees. A number of changes are intended to better align Pennsylvania and federal law, which the PA Chamber applauded, as well as the Department’s affirmation that the rule does not require employers to complete any additional forms or reports.