Working extra hours at your job means less time with family, friends, and enjoying some much-earned downtime. However, it also means that you should receive overtime pay if you worked more than 40 hours in a workweek. If this pay is not reflected in your paycheck, there are state and federal laws that protect your right to overtime pay, including the Pennsylvania Minimum Wage Act (PMWA) and the federal Fair Labor Standards Act (FLSA). However, it is important to have a general understanding of the key differences between the two. An experienced employment lawyer can thoroughly explain the protections each law provides and ensure that you recover the overtime wages you deserve.
Who Qualifies for Overtime in Pennsylvania?
In Pennsylvania, most “non-exempt” employees qualify for overtime pay when they work more than 40 hours in a single workweek. The following employees are generally entitled to overtime pay:
- Hourly employees. Most hourly workers are entitled to overtime after 40 hours in a workweek.
- Salaried employees. Employees who are paid a salary are not automatically exempt, meaning they can still qualify for overtime pay.
- Workers who have been misclassified. Workers who are called “independent contractors,” but legally function as employees, may be entitled to overtime. In Pennsylvania, workers are generally treated as employees, unless the requirements for independent contractor status are established.
Keep in mind that an employer cannot avoid paying an employee for overtime hours that were worked simply by telling a non-exempt employee that overtime pay is not allowed. The Pennsylvania Department of Labor and Industry states that employers must pay for hours worked over 40 unless a valid exemption applies.
How the PMWA Is Broader Than the Federal FLSA
In order to have a general understanding of why Pennsylvania’s state law matters so much, it is important to look at how it differs from the FLSA. The following are the key differences between the two:
In order to have a general understanding of why Pennsylvania’s state law matters so much, it is important to look at how it differs from the FLSA. The following are the key differences between the two:
- The Salary threshold for executive, administrative, and professional employees. This is arguably the biggest battleground in Pennsylvania employment law. Under both federal and state laws, certain workers are considered “exempt” from overtime. These are typically white-collar workers, managers, administrators, and professionals like lawyers, accountants, or engineers who earn a salary and make independent decisions as part of their daily routine. If you are classified as exempt, your employer does not have to pay you overtime, no matter how many hours you work. To be considered exempt under federal law, an employee must meet two tests:
– The Duties Test: What do you actually do all day? Do you manage people? Do you exercise independent judgment on important business matters?
– The Salary Level Test: Do you make at least a specific minimum amount of money per week?
Historically, the federal salary threshold was quite low, meaning employers could easily give an employee a manager title, pay them a relatively modest salary, expect them to work 60 hours a week, and legally deny them overtime because they technically passed the “manager” duties test.
Pennsylvania’s PMWA changed the game by setting salary thresholds that have often been higher or updated more aggressively than the federal levels. Under current Pennsylvania Department of Labor & Industry regulations, the salary threshold required to exempt an employee from overtime is tied to specific formulas that outpace the federal minimums.
If an employer is paying an employee a salary that meets the federal exemption threshold but falls below the Pennsylvania state threshold, that employer must pay the employee overtime. Many Pennsylvania workers have been misclassified as exempt simply because their employers were looking at outdated federal rules instead of stricter state standards. - The calculation of overtime for salaried non-exempt employees. Another major difference lies in how overtime is calculated for people who receive a salary but do not meet the legal requirements to be exempt from overtime. These are workers who receive a fixed weekly or biweekly salary, but whose job duties do not qualify them for an exemption. Under federal law, employers sometimes use a method called the “Fluctuating Workweek” method. Under this method, if a salaried non-exempt employee works extra hours, the employer has already paid for the “straight time” portion through the base salary, and only has to pay an additional half-time for the overtime hours, because the regular rate drops the more hours are worked.
Pennsylvania courts and regulators have looked very skeptically at these clever accounting tricks. In Pennsylvania, calculating overtime for salaried non-exempt employees must strictly follow rules that protect the worker’s earnings, ensuring that the calculation does not unfairly diminish the value of the hours worked. While federal rules can sometimes create loopholes that reduce overtime payouts, Pennsylvania’s enforcement leans heavily toward protecting the worker’s right to full time-and-a-half compensation. - Independent contractors vs. employees. Every year, more people enter the “gig economy” or work as independent contractors. Companies love independent contractors because they do not have to pay payroll taxes, provide benefits, or pay overtime. Unfortunately, many companies misclassify regular, everyday employees as “independent contractors” just to save money. Pennsylvania has strict laws in place, including the PMWA, that prohibit companies from disguising regular employees as independent contractors.
If you are told you are an independent contractor, but your boss sets your hours, provides your tools, tells you how to do your job, and treats you like a regular staff member, Pennsylvania law may view you as a true employee. And if you are a true employee working over 40 hours a week, you are owed overtime.
Common Ways Employers Underpay Overtime
Employers often try to avoid paying employees overtime by creating subtle, systemic workplace habits. The following are common tactics employers use:
- The “Off-the-Clock” Trap. If you have finished your shift, but your manager asks you to finish a report, check an email, or help get the office organized for the next day, your employer may use the argument that you were officially off the clock to avoid paying you overtime for the extra minutes that pushed your workweek past the 40 hours.
- The Misclassification Trap. Your employer cannot simply give you a fancy title like Shift Supervisor or Assistant Director to avoid paying overtime. The law looks at your actual daily duties, not your job title. If you spend 90% of your time doing the same hourly work as everyone else, you are likely non-exempt, which means that you are legally entitled to overtime, regardless of what your contract says.
- The Comp Time Trap. Some employers try to offer “comp time” instead of overtime pay. In the private sector in Pennsylvania, comp time does not replace overtime for a single workweek. If you work 50 hours in week 1, you must be paid for those 10 hours of overtime on that pay period’s paycheck. You cannot simply roll those hours over or trade them for time off later in a different week, unless you are a government or public sector employee, which has different rules.
How to Recover Unpaid Overtime Wages
If your employer failed to pay you for the overtime hours you worked, there are steps you can take to recover the unpaid overtime you are entitled to, including the following:
- Confirm that you qualify for overtime
- Gather evidence of your unpaid overtime hours
- Calculate your unpaid overtime
- File a complaint with the Pennsylvania Department of Labor & Industry
- Consider filing a federal wage complaint
- Consider a lawsuit to recover your wages
- Pay attention to filing deadlines
- Protect yourself against retaliation
- Contact an experienced employment lawyer
Frequently Asked Questions (FAQs):
Can my employer refuse to pay me overtime if I did not get permission to work extra hours?
Employers generally cannot avoid their wage obligations simply by refusing to approve hours they allowed or knew were worked.
How far back can I claim unpaid overtime in Pennsylvania?
The deadline depends on the law under which you are bringing your claim. Since deadlines can affect your ability to recover unpaid wages, it is highly recommended that you seek legal advice as soon as possible.
Can my employer retaliate against me for asking for overtime pay?
Federal and state laws prohibit employers from retaliating against employees for asserting their overtime rights. If you believe your employer has retaliated against you, keep detailed records of what happened and contact an employment lawyer.
How can an employment lawyer help me recover overtime pay?
An employment lawyer can determine whether you qualify for overtime pay, calculate the wages you are owed, and assist you with the process of filing a claim.
Our Experienced Philadelphia Employment Lawyers at The Gold Law Firm P.C. Assist Clients With Unpaid Overtime Claims in Pennsylvania
If your employer has not paid you for overtime hours worked, it is highly recommended that you contact our Philadelphia employment lawyers at The Gold Law Firm P.C. as soon as possible. We will discuss the details of your case, ensure that your legal rights are protected, and negotiate the best possible settlement outcome, including the overtime pay you are entitled to receive. To schedule a free consultation, call us today at 215-569-1999 or submit our online form. With office locations in Philadelphia and Malvern, Pennsylvania, Pennsauken, New Jersey, and New York, New York, we proudly serve clients in the surrounding areas. *NYC, Pennsauken, and Malvern offices are by appointment only.
