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Federal overtime changes just five months away

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(Harrisburg) — New federal overtime rules will be taking effect in December and this week state lawmakers heard about some of the challenges that lie ahead in achieving compliance.

In classifying exempt and non-exempt employees, only the latter can be paid overtime, but those who are exempt – or salaried employees – have to be paid at a certain annual threshold.

That number is currently about $23,000 but it’s about to more than double to $47,500. 

That’s a big deal to both emplorers and employees according to Bob Pritchard, a wage attorney and shareholder with the Pittsburgh firm of Littler-Mendelson.  

He testified before the Senate Appropriations and Labor and Industry committees.

“It is going to be a significant sea-change in how employers treat their employees, and not just with respect to the classification, but with respect to the workplace flexibilities and treatment of those employees as salaried versus hourly employees,” Pritchard said.

He also said businesses can’t just grant salary increases to $47k or magically come up with overtime pay, so reductions in many services are likely, including from nonprofit agencies.

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