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In late June, the Pennsylvania Dept. of Labor & Industry released a proposal that would dramatically change overtime eligibility rules imposed on Pennsylvania employers. The proposal would raise the wage threshold for “exempt status” to more than double the current rate set by the federal government. The proposed changes also include significant revisions to the so-called “duties tests,” which are also used to determine eligibility. And, the rule would establish an automatic update to the salary threshold every three years beginning in 2023.
These changes are similar to a proposal put forth by the Obama administration in 2015, which was widely opposed by the employer community and ultimately struck down by a federal court.
The state proposal has prompted the same concerns. Employers not only describe significant increased costs, but damage to workplace morale as employers could be forced to shift some employees from earning a salary to being paid by the hour. This transition typically requires more burdensome record-keeping, less flexibility, a rigid work schedule and fewer training opportunities. And since it would only apply to Pennsylvania, it would further harm the Commonwealth’s competitiveness in relation to other states.
The Dept. of Labor & Industry’s proposal is now in the public comment period, and employers have the opportunity to submit comments on the new rules regarding overtime eligibility standards.
Webinar highlights To help businesses understand the impact of the proposed overtime eligibility rules, as well as tips on how to prepare for the potential changes, the Pennsylvania Chamber presents employment defense attorney Josh Vaughn. He will explain:
The speaker will open up the last few minutes of the webinar to answer questions from participants.
Joshua C. Vaughn, Associate with law firm Littler, is an employment defense attorney representing employers in collective, class, and hybrid actions brought under the federal Fair Labor Standards Act and state wage and hour laws. He has defended employers in the health care, financial services, retail, and technology industries in state and federal courts throughout the United States.
Josh has successfully defeated conditional certification in threatened nationwide collective actions, won summary judgment pre-certification, and has successfully resolved many other cases involving complicated legal and business issues that arise in wage and hour litigation. Josh has significant experience defending against claims for overtime (exemption misclassification, off-the-clock, overtime rate calculation), misclassification of independent contractors, minimum wage, meal and rest breaks, “suitable seats,” reporting time and split shifts, expense reimbursements and waiting-time penalties.
In addition to his substantial practice defending and advising employers with respect to complex wage and hour litigation, Josh has helped employers enforce non-compete agreements, and has defended employers against a variety of single plaintiff claims, including claims involving race, age, gender, disability discrimination, harassment, retaliation, breach of contract, wrongful termination, intentional and negligent infliction of emotional distress, and unjust enrichment.
Josh regularly partners with clients to conduct wage and hour and employment practices audits, provide guidance regarding hiring and terminations, conduct supervisor and management training related to wage-and-hour compliance, and provide advice regarding complex litigation strategy.