Minimum Wage

Several wage and overtime changes will affect Pennsylvania employers starting August 5, 2022. Some updates bring Pennsylvania’s wage and overtime regulations more in line with the Federal Fair Labor Standards Act (FLSA), while others expand the distance between the two.

Employers utilizing tipped employees or a fluctuating workweek method to calculate overtime rates should pay special attention to these updates, explained here, and adjust their policies accordingly.… Continue Reading

The U.S. Department of Labor (“DOL”) published a Final Rule on Monday November 22, 2021 raising the minimum wage for federal contractor employees to $15 an hour. The Rule takes effect on January 30, 2022 and will apply to new or updated contracts with the U.S. Government. The higher wage will apply to existing contracts when parties exercise their option to extend contracts, which often occurs annually.… Continue Reading

The Department of Labor (“DOL”) announced publication of the Dual Jobs final rule. This rule finalizes the DOL’s proposal to withdraw one portion of the Fair Labor Standards Act (“FLSA”) tip rule that was finalized in 2020. Employers who employ workers engaged in tipped work, like servers and bartenders, need to consider how this rule impacts their operations and tipped employee pay.… Continue Reading

On July 21, 2021, the U.S. Department of Labor (“DOL”) announced that a wide range of government contractors would be required to pay private sector employees at least $15 per hour, in a plan to carry out President Joe Biden’s executive order signed this past April.  Our blog post about President Biden’s executive order requiring the wage increase can be found here.… Continue Reading

On June 21, 2021, the U.S. Department of Labor (DOL) announced that it will propose new regulations limiting the amount of time that tipped employees, like food servers or bartenders, can perform on non-tipped work before they would be owed a full minimum wage from their employer.  The public will have until August 23, 2021 to comment on the DOL’s proposed regulations. … Continue Reading

On Tuesday, April 27, President Biden signed an executive order requiring federal contractors to pay their employees a minimum of $15 an hour starting on March 30, 2022. After that, the order will continue to index the minimum wage for federal contractors to an inflation measure.

This raise in the pay floor – which was previously increased by President Obama – represents a hike of about $4.… Continue Reading

On Tuesday, the Department of Labor (DOL) announced that it had issued two Notices of Proposed Rulemaking (NPRM) concerning tipped workers’ compensation. If adopted, the NPRM would delay, for a second time, the effective date of several rules the agency published during the Trump Administration. Though for now the move is merely a delay, it sets the stage for the Biden Administration to put its own presumably employee-friendly stamp on regulations concerning tipped workers’ wages and the practice of tip pooling in the near future.… Continue Reading

On January 26, 2021, the U.S. Department of Labor (DOL) suspended the Final Rule on tipped employees that it had issued on December 22, 2020. The Final Rule would have clarified tip-pooling for employees in the food service and hospitality industry, as well as how the tip credit applied to employees who perform both tipped and non-tipped duties.… Continue Reading

The DOL abruptly ended the Payroll Audit Independent Determination (PAID) program on January 29, 2021.  The program, which was adopted during the Trump administration, allowed employers to self-report FLSA violations before a complaint, pay back pay and avoid liquidated damages, penalties or fines.  Employees were prohibited from bringing private actions to recover additional damages for these violations. … Continue Reading

The DOL issued an opinion letter on January 19, 2021, finding a wider group of journalists and media personnel qualify for the creative professional exemption under the FLSA.  Traditionally, the DOL and courts found that exemptions under the FLSA should be narrowly construed.  In 2018, the United States Supreme Court upended that standard, finding that exemptions should be given a “fair reading.” … Continue Reading