In October 2020, Pennsylvania regulations took effect that increased the salary threshold for exempt employees to the federal level, and would have increased the threshold above the federal minimum beginning in October 2021.

However, a recent budget compromise between Democratic Governor Tom Wolf and a Republican-led state legislature has resulted in the regulations’ repeal.

As a result, employers can continue to treat employees as exempt if they satisfy the existing Fair Labor Standards Act (“FLSA”) threshold of $684 per week, or $35,568 per year, as well as the applicable duties test.  Employers should review salaried employees’ compensation and duties to ensure FLSA compliance, as well as compliance with the existing provisions of the Pennsylvania Minimum Wage Act that were not impacted by the repeal of the salary regulations.