Employees in Pennsylvania have the protections of federal and state laws when it comes to their overtime pay. It is imperative that employers understand the Fair Labor Standards Act and the Pennsylvania Minimum Wage Act so they can ensure they are paying workers appropriately. This decreases the chance that they will face legal issues from employees who claim they weren't paid appropriate overtime wages.
Overtime pay must be paid if a worker puts in more than 40 hours per week for hourly workers. The pay for this is a minimum of 1.5 times the standard pay for that employee. While federal law puts a cap on overtime for workers who make more than $100,000, state law doesn't have a cap. This means that workers in Pennsylvania are entitled to overtime payments regardless of how much they earn per year.
There are several other differences that are present between federal and state law. One of these pertains to computer employees. Federal overtime laws don't cover these employees, but state law does. This means that overtime pay is extended to them based on the state's laws.
Some employers might try to skirt around the harsher set of laws by stating the easier ones. This isn't ever the way it should be. Employers are required to abide by both laws, so the stricter laws would apply since they provide more protection for employees. Ensuring that your business is paying workers in accordance with the laws can protect your company.
If an employee thinks that their employer isn't abiding by the laws they should, that worker may opt to take legal action. Knowing that your company is complying with the applicable laws and being able to show that through payroll records can help you when you have to face this type of action.