By Derrek Cummings on February 21st, 2017
Overtime laws were first established at the federal level on the heels of the Great Depression. The previous abuse of workers by employers included long work days with no time off, low wages and the constant fear of being fired. Some say a bad job is better than no job at all, but poor working conditions lead to poor living conditions, the anger and stagnation of the labor force and ultimately the collapse of commerce.
In recent decades, overtime rules were updated frequently to protect more workers and maintain a basic standard of living. Overtime laws in Pennsylvania add an additional layer of specificity for the treatment of workers in this state. Federal overtime rules apply except in situations where the PA laws provide a better benefit for the employee.
Established Wage and Hours Laws
At the federal level, overtime pay is governed by the Fair Labor Standards Act (FLSA) originally established in 1938. In its day, FLSA was designed to end child labor and create a minimum standard wage in the US for the first time. That minimum wage, in 1938, was 25 cents an hour, and the work week was defined as 44 hours.
On the eve of signing FLSA into law, President Franklin Roosevelt warned working people not to accept the argument that a minimum wage of $11 a week would bankrupt the American industry, least of all from an executive who is making $1,000 a day. FLSA established the principle of overtime pay and has been amended several times since its implementation.
The newest amendments to FLSA, referred to as the Final Rule, changes the rules as to who is eligible for overtime pay. It extends coverage to more employees and increase the number of people who are eligible. Because of the new thresholds being set, FLSA will supersede Pennsylvania labor law on overtime eligibility in some respects.
This means employers who formerly followed PA law need to be aware of the changes at the federal level that might affect their employment practices when it comes to overtime pay.
What Are the Laws on Overtime?
FLSA is fairly clear on the calculation of overtime pay. Based on a 40-hour week — not 44 as it was originally established in 1938 — overtime pay is calculated weekly. For every hour beyond 40 that an employee works in a single week, he is entitled to overtime pay. If an employee works 42 hours in one week, for example, and only 38 hours the next week, he is still entitled to two hours of overtime pay for that two-week period.
Extra hours cannot be carried over and counted in a subsequent week period.
An employee’s week must constitute seven consecutive days, but it does not have to start on Monday. The work week for any particular employee can straddle two calendar weeks, running Tuesday to the following Tuesday, for example, but must remain consistent for that employee. If your work week begins on Tuesday, a new work week begins every Tuesday for you.
Overtime is simply calculated on the number of hours worked in the scheduled seven consecutive day week. After 40 hours, overtime begins. Overtime is not dependent on the day of the week. Hours worked on Saturday, for example, do not count as overtime unless you have already put in 40 hours earlier in the week. If your work week begins on Saturday, you will never earn overtime for work on Saturday or Sunday.
An employee whose week begins on Tuesday and who puts in eight hours each day, will be working regular time on Saturday. If he works on Sunday, however, he will be on overtime, assuming he has already worked his standard eight hours per day Tuesday through Saturday.
In contrast, an employee who works eight hour days but begins his work on Monday will be on overtime if he works on Saturday, assuming he has already put in his standard eight hour days from Monday through Friday.
There is no limit to the number of hours an employee may work in a week, as long as s/he is 16 or older. FLSA only stipulates that any hours worked beyond 40 must be compensated at the overtime rate. Individual employers may set limits on the number of hours worked in a week, informing employees in advance of those stipulations.
The overtime pay rate is one-and-one-half times the regular pay rate. Most workers refer to this as “time-and-a-half.” The regular pay rate may not be less than the established minimum wage, and overtime pay cannot be calculated on anything less than the regular pay for the particular employee.
FLSA stipulates that certain payments are exempt from the calculation of overtime pay. These include: expenses, discretionary bonuses, gifts, holiday pay, pay accrued during sick leave or premiums paid for certain days, like holidays. Overtime is calculated on base pay.
If an employee performs two different jobs at two different rates of pay during the week, his overtime rate is calculated based on a weighted average of the different pay rates. There is also a provision for calculating the overtime rate based on the rate being paid at the time the work was performed.
When multiple rates of pay are involved, overtime rate calculations can get complicated. It is a good idea to review these calculations with your employer to be sure your rights under FLSA are not being violated.
Employee Rights in the Workplace
Being paid time-and-a-half for overtime work is just one of the rights employees have under the law. The right to be properly compensated for the work they do is an important right established by FLSA for all American workers. Since there are no limits on overtime work under FLSA, however, the door is open for possible abuses by employers.
As long as the overtime work is compensated properly and does not create an unsafe working environment, mandatory overtime is legal under federal law. This means your employer could require you to work overtime and might impose certain penalties for your refusal to do so.
Several states, including Pennsylvania, limit mandatory overtime to protect workers’ rights. In these states, there may still be retribution from an employer for refusing, including termination, but there are also more potential legal challenges to such retribution.
Despite the fact that mandatory overtime is legal, your employer must not violate any of your other rights as an employee. If working overtime would create an unsafe work environment, for example, you may not be required to do so. Depending on the type of work you do, and the number of consecutive hours you have already worked, an argument might be made for the requested overtime creating a safety hazard.
An employer may not require you to work overtime and refuse to pay the minimum overtime rate. The exemptions to this mandatory overtime rule include computer, administrative and salaried professionals; workers with childcare responsibilities, farm workers and anyone who works on a water-bound vehicle. If your job falls outside of these exempt positions, you cannot be refused overtime pay.
Is Overtime Mandatory in Pennsylvania?
States must follow federal law, but they are able to establish more stringent or specific laws to govern activities within their jurisdiction. As an employee in Pennsylvania, you are subject to the FLSA and Pennsylvania’s Minimum Wage Act. Established in 1968 and most recently amended in 2006, the PA Minimum Wage Act establishes rules for wages and overtime pay.
Recent changes in federal law allow employers to limit the amount of overtime work for employees earning more than $100,000 a year. In Pennsylvania, however, this restriction does not apply because PA law does not allow it. Where federal and Pennsylvania law differ, employers in PA must follow the one that is most beneficial to the employee.
Computer professionals are exempt from federal overtime rules, but in Pennsylvania they are not. Employers in PA must extend overtime pay to computer professionals under state law. Federal law also requires any executive, administrative or professional employee earning less than $455 a week to be paid for overtime worked.
In PA, the threshold is only $155 per week. In this instance, PA employers would be in violation of federal law if they followed the Pennsylvania statute — therefore, they must compensate employees for overtime if they earn between $155 and $455 per week. Until there are new overtime laws in PA, some of the FLSA revisions from 2004 must be applied.
Talk to an Attorney about your overtime
Navigating federal and state overtime laws as they coincide and overlap can get confusing, especially in recent years with frequent changes to both. For a clear explanation of how overtime laws affect your employment situation, contact Weisberg Cummings, P.C.
Our experienced employment law team can answer all of your questions about new overtime laws, your status as exempt or non-exempt and every other aspect of employment law in Pennsylvania.
If you believe your employer is violating your rights, we are here to help. Our attorneys are experienced in determining how to navigate difficult employment situations, when it is time to bring a claim, and how to advance that claim for the ultimate success of our client.
Whether you are an hourly worker, salaried or a sales professional, we can assess whether you are being treated fairly by your employer under Pennsylvania and federal employment law. Contact us today for a free consultation.