When do employers owe workers overtime pay in Pennsylvania?

On Behalf of | Jun 25, 2021 | Employment Law -- Employer |

Employers and business owners in Pennsylvania want to pay their workers fairly while still protecting their bottom line. Thus, it pays to have a good understanding of overtime pay laws in Pennsylvania to avoid becoming the subject of a wage and hour dispute.

Overtime pay in Pennsylvania

With a few exceptions, under Pennsylvania law all workers in Pennsylvania are entitled to 1.5 times their regular rate of pay for all hours worked over 40 hours in a workweek. A workweek constitutes seven days in a row, starting on the day chosen by the employer. Overtime pay is owed to workers, whether they are paid hourly or are salaried.

What constitutes a regular rate of pay?

For overtime pay purposes, a worker’s regular rate of pay includes all compensation for work paid to the worker. However, there are some exceptions. One exception is sums paid as gifts on holidays or special occasions that are not based on hours worked, production or efficiency. Paid vacation days, holidays, sick leave, traveling expenses and other reimbursed expenses are also exempt from an employee’s regular rate of pay. Bonuses paid at the sole discretion of the employer and profit-sharing plans unrelated to hours of work, production or efficiency are also not part of a worker’s regular rate of pay. Insurance benefits do not count towards a worker’s regular rate of pay for overtime purposes.

Learn more about wage and hour laws in Pennsylvania

Employers who violate wage and hour laws may find themselves facing lawsuits brought by workers. Thus, it is important that they educate themselves on overtime pay in Pennsylvania. This post is for educational purposes only and does not contain legal advice. Our firm’s webpage on employment litigation may be of interest to employers who want to learn more about this topic.