Overtime Laws in Pennsylvania

As per the Pennsylvania Labor Law, employers must adhere to the overtime pay regulations as stated under the federal Fair Labor Standards Act (FLSA) and Pennsylvania Minimum Wage laws. While some jobs are exempt from receiving overtime, the state minimum wage legislation may demand otherwise. 

The table below shows key changes that affect overtime and exemptions in 2025:

Overview of Pennsylvania Overtime Laws 2026

Similar to many U.S. states, Pennsylvania requires employers to pay overtime wages at 1.5 times the regular rate for all hours worked over 40 in a workweek for all non-exempt employees. The state does not have any daily overtime rules. Only weekly rules apply.

• The federal salary exemption and duties test determines the eligibility for executive, administrative, and professional workers. 
• Tipped workers are eligible to receive overtime pay, which must be calculated based on the regular rate, including tips. 

Starting 2025, employers are mandated to mention overtime as a separate line item instead of combining it under ‘wages, tips, and other compensation,’ on an employee’s W-2 form.

Moreover, eligible employees can claim overtime tax deduction as a personal deduction when filing returns. This reduces taxable income, which lowers the overall tax liability.

Summary:

• Overtime rate: 1.5× the employee’s regular hourly rate. 
• Weekly overtime: Applies after 40 hours in a workweek. 
• Daily overtime: No separate requirement for hours worked in a single day. 
• Exemptions: Similar to federal FLSA criteria. Salaried and duties-based exemptions apply. 
• Recordkeeping: Employers must calculate correct “regular rate” including commissions etc., and mention these as separate line items in an employee’s W-2 form. 

Eligibility for Overtime in Pennsylvania

• Non-exempt employees: Mostly include hourly, tipped, and some salaried workers who earn at or below the state salary threshold.
• Exempt employees: Include people who perform executive, administrative, professional duties, are engaged in outside sales, IT professionals, and highly compensated (earning ≥$151,164/year and meet the state duties test. 
• State-specific exemptions: These include people who work on farms, as domestic workers, seamen, drivers in certain fields, radio/TV station staff, maple sap processors, and student and youth workers. Some student/youth workers also fall in the exemption category.

Federal vs. Pennsylvania Overtime Rules

Pennsylvania strictly follows the federal FLSA for overtime, except for industry exemptions where its list is broader than the federal exemptions. 

For instance, if Merry works 45 hours a week at $20/hour, according to both federal and state law, she will earn a regular pay for 40 hours ($800). Her overtime pay for the additional 5 hours worked at 1.5X rate would be $150, and she will earn a total of $950 that week.

The table below shows federal vs. state overtime rules alignment.

Exemptions in Pennsylvania

In Pennsylvania, exemptions include:

Here are Pennsylvania’s overtime exemptions organized as detailed one-liners:

White-Collar Exemptions

• Executive Employees: Individuals who manage an enterprise or department, supervise at least two full-time employees, have hiring/firing authority, and earn at least $684 weekly ($35,568 annually) qualify as exempt under both PMWA and FLSA.
  
• Administrative Employees: Workers whose primary duty includes exercising discretion and independent judgment in matters of significance related to management or business operations, andwho  earn the minimum salary threshold, are classified as exempt.
  
• Professional Employees: Individuals whose duties require advanced knowledge in specialized fields (law, medicine, accounting, engineering),who  possess relevant degrees/licenses, and meet salary requirements, are exempt from overtime.
  
• Outside Salespersons: Employees who spend more than 80% of their time making sales away from the employer’s premises qualify for exemption (Pennsylvania uses a quantitative test, unlike the federal qualitative test).

Industry and Occupation-Specific Exemptions

• Agricultural Workers: Farm laborers and those engaged in agricultural production activities are exempt from overtime requirements.
  
• Seamen and Domestic Service Providers: Employees in maritime occupations and those performing domestic service within private households are exempt.
• Automotive Workers: Drivers and mechanics employed in auto sales or repair shops qualify for exemption.
  
• Media Employees: Radio and television station staff and employees are exempt from overtime pay.
  
• Maple Sap Processors: Workers engaged in maple syrup production activities are exempt.
  
• Student and Youth Workers: Students working 24 hours or less per week and youth workers under specific circumstances are exempt.
  
• Recreational and Seasonal Workers: Employees at camps, recreational centers, and seasonal establishments are exempt from overtime requirements.
  
• Motor Carriers and Golf Employees: Employees of motor carrier transportation services and golf caddies are exempt.
  
• Switchboard Operators: Telephone exchange and switchboard operators qualify for exemption.
  
• Nonprofit Organization Employees: Staff employed by nonprofit educational, religious, or charitable organizations are exempt from overtime pay.
  
• Government Workers: Elected officials, appointed advisers, and government staff performing policymaking functions are exempt.

Important Pennsylvania-Specific Limitation:

Pennsylvania does NOT recognize the federal highly compensated employee exemption for employees earning $151,164 or more annually—these employees must still be paid overtime unless they qualify for another exemption.

Employer Obligations and Employee Rights

• Weekly wage payment: Employers must pay wages weekly on the scheduled payday.
• Recordkeeping: Employers must keep accurate records of hours worked, pay rates, wage deductions, and overtime for all employees.
• Workplace protections: Employers must adhere to OSHA requirements, anti-discrimination, and privacy.
• Benefits: Employers must comply with federal benefit programs such as Social Security, unemployment insurance, and workers’ compensation.
• Penalties: Failure to pay overtime wages can result in back wages, fines, and civil actions, if necessary.
• Reporting: Employees can file wage claims or complaints with the PA Department of Labor & Industry or the U.S. Department of Labor.