Get Paid! An Employee's Guide to Wages, Overtime, and Severance in Pennsylvania curleyrothman.com

1

GGEETT PPAAIIDD!! AN EMPLOYEE'S GUIDE TO WAGES, OVERTIME, AND

SEVERANCE IN PENNSYLVANIA “You should have a basic understanding of some of the more important aspects of Pennsylvania employment law in order to

ensure that you recognize a violation by an employer, should one occur.”

Charles Curley Pennsylvania Employment Attorney

Get Paid! An Employee's Guide to Wages, Overtime, and Severance in Pennsylvania curleyrothman.com

2

As an employee in the

Commonwealth of Pennsylvania,

you are protected in many aspects

of your employment by both state

and federal laws. Most employers

make an honest effort to abide by

these laws, but there are employers

who intentionally violate minimum

wage and overtime laws in an effort to increase their profits. Employers may also

refuse to honor the terms of a severance package agreement when the

employer-employee relationship ends, leaving an employee without pay or

benefits on which the employee was relying. You should have a basic

understanding of some of the more important aspects of Pennsylvania

employment law in order to ensure that you recognize a violation by an employer,

should one occur.

Minimum Wage Law

In the United States, the Fair Labor Standards Act, or FLSA, sets the federal

minimum wage at $7.25 per hour as of 2015. In addition, many states also have

minimum wage laws that set the minimum wage rate higher than the federal

minimum wage. Although Pennsylvania does not have a state minimum wage

rate that differs from the federal rate, several surrounding states do, including

New York, New Jersey, and West Virginia. If you are a covered employee and

are engaged in work that is not exempt from the FLSA minimum wage

requirements, you must be paid at least $7.25 per hour for up to 40 hours per

Get Paid! An Employee's Guide to Wages, Overtime, and Severance in Pennsylvania curleyrothman.com

3

week. Certain employees, however, are exempt under the FLSA from the

minimum wage requirement, including, but not limited to, the following:

Executives, administrative, and professional employees

Outside sales employees

Certain employees in computer-related occupations

Certain employees in seasonal amusement or recreational occupations

Certain farmworkers

Overtime Laws

Both the FLSA and the Pennsylvania

Minimum Wage Act, or PMWA, also

require overtime pay to be paid to

covered, non-exempt employees at the

rate of one and one-half the employee’s

regular hourly wage for all time worked

over 40 hours in a workweek. Although

the state and federal overtime laws are

similar, there are some important

differences, particularly with regard to

exemptions. When state and federal

overtime laws conflict, an employer is required to follow the rule that would

provide the employee with the most benefits. For example, the FLSA exempts

certain employees in computer-related occupations from the overtime pay

provisions found in the law; however, Pennsylvania law does not honor that

Get Paid! An Employee's Guide to Wages, Overtime, and Severance in Pennsylvania curleyrothman.com

4

exemption. Therefore, in Pennsylvania, overtime pay rules do apply to all

employees in computer-related occupations. Both the FLSA and the PMWA,

however, exempt employees engaged in an “executive, administrative, or

professional capacity” from the overtime pay requirements.

Overtime pay is calculated using an employer’s regular, fixed workweek.

Although a workweek need not coincide with a calendar week, it must consist of

seven consecutive 24 hour periods totaling 168 hours. Hours may not be

averaged over a two week period in order to form a workweek or in order to

calculate overtime eligibility.

Overtime pay is calculated using the

employee’s regular rate of pay. The regular

rate of pay may not be less than minimum

wage. For most employees, the regular

rate of pay is easy to determine; however,

for employees who are paid by

commission, piece-rate, or salary, overtime

pay must be paid based on the average

hourly rate derived from such earnings.

Overtime pay cannot be waived by an

employee. By the same token, an

employer cannot enact a “no overtime”

policy and use that policy to get around

paying overtime to an employee who has,

in fact, worked more than 40 hours in a

given workweek.

Get Paid! An Employee's Guide to Wages, Overtime, and Severance in Pennsylvania curleyrothman.com

5

Severance Pay

A “severance package” is sometimes offered to an employee when the employer-

employee relationship ends. The severance package typically includes a

monetary award and/or benefits, such as continued health insurance.

Pennsylvania does not have a severance pay law. Therefore, issues relating to

severance pay are handled by looking at the employment contract between the

parties or the employer’s company policy.

Although the Commonwealth of Pennsylvania does not have a law that regulates

severance pay directly, a law that took effect in 2012 does indirectly impact

severance pay issues. Prior to the passage of Act 6 of 2011, severance pay was

not used to offset unemployment insurance benefits. As of January 1, 2012,

however, income denoted as “severance” pay may serve to offset any

unemployment benefits an employee is entitled to now or in the future. When

negotiating a severance package, it is crucial to keep this in mind.

Wage, Overtime, and Severance Pay Violations – What Recourse Does an

Employee Have?

As an employee, you have numerous employment rights afforded to you by both

state and federal laws. If you believe that your employer has violated the wage

and/or overtime provisions of one or more of those laws, you may file a claim

with the Wage and Hour Division of the U.S. Department of Labor (USDOL)

and/or with the Pennsylvania Department of Labor and Industry (PDLI). Both of

these agencies may investigate your claim, which may result in the payment of

back pay for wage and/or overtime violations.

Get Paid! An Employee's Guide to Wages, Overtime, and Severance in Pennsylvania curleyrothman.com

6

You may also retain the services of an experienced Pennsylvania employment

law attorney. Although both the USDOL and the PDLI have the ability to

investigate wage and overtime violation claims, not all complaints are actually

investigated and those that are often take months, even years, to reach a

conclusion. If you are owed wages because your employer violated the minimum

wage and/or overtime laws, you likely cannot afford to wait through a lengthy

investigation and claims process. Hiring an experienced employment law

attorney can expedite that process. In addition, if the employer did indeed violate

the wage laws, you will also be entitled to “liquidated damages” in an amount

equal to 25 percent of the sum owed to you in wages and/or overtime pay, plus

your employer will be responsible for paying your attorney fees and costs.

Get Paid! An Employee's Guide to Wages, Overtime, and Severance in Pennsylvania curleyrothman.com

7

If you have questions or concerns relating to minimum wage, overtime, or

severance pay issues in Pennsylvania, it is in your best interest to consult with an

experienced Pennsylvania employment law attorney as soon as possible. If you

believe your employer has violated the wage or overtime laws, or that your

employer is not honoring a severance pay agreement, you should also contact

an employment law attorney immediately to ensure that you receive all wages

and benefits owed to you by your employer.

National Conference of State Legislatures, State Minimum Wages

U.S. Department of Labor, Am I an Employee?

U.S. Department of Labor, Overtime

U.S. Department of Labor, Wage and Hour Division, Handy Reference Guide to the Fair Labor Standards Act

U.S. Department of Labor, Overtime Pay Requirements of the FLSA

Pennsylvania Department of Labor and Industry, Severance/Pension Pay Deductions FAQs

Pennsylvania Department of Labor and Industry, Overtime Rules in Pennsylvania

Get Paid! An Employee's Guide to Wages, Overtime, and Severance in Pennsylvania curleyrothman.com

8

About Curley & Rothman, LLC

Curley & Rothman, LLC is a boutique firm of

commercial lawyers serving clients ranging from

individuals to Fortune 500 corporations in

Pennsylvania and New Jersey. We provide

clients with experienced, skilled, and honest

advice and representation in commercial and

business-related legal matters. Our mantra is

"Relentless Representation" and we hold to it.

We are determined to do everything possible to

provide you with the competitive edge you need to win.

At the Conshohocken law firm of Curley & Rothman, LLC, we understand your time and

resources are valuable, so we will not waste them by agreeing to represent you in a case in

which you cannot prevail. If we agree to take your case, it is because we are confident we can

come up with winning strategies for you. Contact us now by calling 610-834-8819 to schedule

your free consultation today.

Spring Mill Corporate Center

1100 East Hector Street

Suite 425, Conshohocken, PA 19428

www.curleyrothman.com

Phone: 610-834-8819

Fax: 610-834-8813