As October begins and businesses continue to overcome hurdles related to the COVID-19 pandemic (new health guidelines and workforce shortages, just to name a few,) there’s one less thing they’ll have to worry about this week – the implementation of a sweeping expansion to overtime eligibility that up until this June was viewed as an inevitability.
Back in 2018, the Wolf administration first proposed the regulation, which is years after the courts struck down a similar (but not as extreme) effort by the Obama administration. The rule aimed to significantly and regularly expand the number of employees who were eligible for overtime pay – AKA time-and-a-half pay – for hours worked beyond 40 a week. Right away, we heard from our members that this would be a major detriment to their businesses, as it would force those who couldn’t afford the expansion to convert salaried workers to hourly status – forcing them to clock in and out with no promise of higher wages and the flexibility they’d previously enjoyed.
The PA Chamber has led the fight against the implementation of the overtime rule changes since their fruition. We also led a diverse coalition of employers, including nonprofits, the higher education and healthcare communities, and small businesses in voicing opposition to the rule. As the months toward its implementation ticked down, employers who were already grappling with the economic hurdles associated with the pandemic faced the first eligibility expansion on Oct. 3, 2021.
However, that all changed in June, as the PA Chamber’s efforts – and the actions of pro-business lawmakers – led to the rule being repealed as part of the 2021-22 state budget deal. Our organization issued this press release upon the announcement that the rule would be repealed.
Thank you for lending your voice to help us represent your best interests in the halls of the state Capitol, and achieve this major win on behalf of Pennsylvania’s broad-based business community.