Overtime and Wage & Hour Laws (FLSA)

Wage and hour laws ensure workers receive proper pay for their time, including overtime rates when required by the Fair Labor Standards Act (FLSA). At Polishan Solfanelli, our experienced Scranton, Pennsylvania lawyers focus on guiding employees through complex wage disputes and helping them understand their rights under federal and state regulations. Whether it involves unpaid overtime, misclassification issues, or withheld wages, we know how to pursue solutions that address both immediate concerns and long-term goals. We understand that a fair wage is essential for individuals and families trying to make ends meet, and we believe that everyone deserves respect and proper compensation in the workplace. Our team is dedicated to thoroughly evaluating situations, advocating for just outcomes, and achieving fair results. If you believe you are owed additional pay or suspect your employer may have violated wage and hour laws, contact us at 570-562-4520 to discuss how we can help.

Federal and Pennsylvania Wage and Hour Standards

Overtime and wage-and-hour obligations in Pennsylvania stem from two primary sources. At the federal level, the Fair Labor Standards Act (FLSA) sets rules for minimum wage, overtime pay, and recordkeeping. At the state level, these requirements are often reinforced or expanded through the Pennsylvania Minimum Wage Act (PMWA) and the Pennsylvania Wage Payment and Collection Law (WPCL). Employers cannot rely solely on FLSA compliance; Pennsylvania may impose different or more stringent obligations.

Pennsylvania’s current minimum wage remains $7.25 per hour, the same as the federal rate. Nevertheless, the state may adopt a higher wage in the future. Some employers who comply with the federal baseline may face liability if they neglect any Pennsylvania-specific requirements. Pennsylvania also sets deadlines for wage claims that can differ from federal law, making it vital for employers to abide by both state and federal standards.

If questions arise about wage or overtime issues, you may wish to consult with a lawyer in Scranton, Pennsylvania.

Key Differences Between Federal and State Law

Although the FLSA and Pennsylvania law share significant overlap, important disparities can affect how employers manage wages, hours, and recordkeeping:

• Minimum Wage: Pennsylvania’s minimum wage is currently $7.25 per hour, mirroring the federal level. Because the commonwealth possesses the authority to set a higher rate, employers should remain alert to potential changes.
• Overtime Calculation: Both Pennsylvania law and the FLSA generally require time-and-a-half for hours worked over 40 in a workweek. However, Pennsylvania may adopt different interpretations or specific exceptions, such as for certain seasonal or recreational businesses.
• Exemptions: While Pennsylvania mirrors many of the FLSA exemptions for executive, administrative, professional, computer, and outside sales employees, subtle differences exist. Pennsylvania regulations can have distinct criteria for duties tests or salary thresholds, and Pennsylvania courts may not automatically follow federal interpretations.
• Statute of Limitations: Under the FLSA, wage claims typically carry a two-year statute of limitations (or three years if the violation is willful). Pennsylvania’s WPCL allows a three-year period, giving employees a longer window to pursue unpaid wages.
• Enforcement Mechanisms: Pennsylvania’s Department of Labor & Industry often has unique enforcement priorities and may interpret certain exemptions in ways that differ from federal authorities.

A Scranton, Pennsylvania attorney can offer guidance on how these differences may impact your workplace obligations or rights.

Exempt vs. Non-Exempt Employees

Employers must carefully differentiate between exempt and non-exempt employees because exempt workers are not entitled to overtime. An employee’s job title alone does not control exempt status. The employee’s actual duties, level of responsibility, and salary threshold must satisfy federal and state standards. Pennsylvania has, at times, issued regulations that would set its own salary threshold above the federal minimum of $684 per week. While currently aligned with the federal level in practice, that alignment can shift if new Pennsylvania regulations take effect. Employers should confirm that their salary structures remain in compliance with both FLSA and PMWA rules.

Common mistakes arise when businesses classify assistant managers, administrative personnel, or inside sales staff as exempt without meeting all of Pennsylvania’s requirements. If misclassification occurs, employers may owe back wages, damages, and possibly penalties under both state and federal law. Because Pennsylvania law places the burden of proof on the employer, maintaining accurate records of duties, pay structures, and hours is essential.

Tipped Employees

Pennsylvania permits a tip credit for employees who regularly receive tips, allowing employers to pay a base wage lower than $7.25 per hour, typically $2.83, provided tips bring the total pay to at least $7.25 per hour. If an employee’s tips do not close the gap to $7.25, the employer must make up the difference.

Tip Pooling Guidelines

Pennsylvania generally follows FLSA guidelines regarding tip pooling, but employers should be mindful of the detailed parameters. Under both federal and Pennsylvania law, any tip pool must be shared only among employees who customarily and regularly receive tips, such as servers or bartenders. Individuals holding managerial roles or who work primarily in back-of-house roles that do not receive tips cannot receive distributions from tip pools. Employers may not withhold a portion of employees’ tips unless a valid tip pool arrangement is in place. Accurate recordkeeping is crucial to substantiate compliance with tip-credit and tip-pooling rules.

Pennsylvania Minimum Wage Obligations and Break Period Rules

The statewide minimum wage stands at $7.25 per hour, the federal minimum. Although Pennsylvania law does not mandate specific meal or rest breaks for most adult employees, employers are encouraged to develop consistent break policies to avoid disputes. For minors, Pennsylvania law is more specific. Workers who are under 18 years of age must receive at least a 30-minute break if they work five consecutive hours. Employers of minors should also be aware of additional child labor requirements regarding daily and weekly work-hour limitations.

Employers should monitor legislative discussions in Harrisburg, as lawmakers occasionally propose increases to the minimum wage and adjustments to other employment-related laws. If enacted, these changes may take effect quickly. Staying informed can avert misunderstandings about employees’ compensation and hours.

Special Industries and Exemptions

Pennsylvania law recognizes that certain business sectors must manage pay differently:

• Seasonal and Agricultural Operations: Some agricultural employees may be exempt from specific wage-and-hour mandates under both FLSA and Pennsylvania law, including overtime requirements. In addition, seasonal amusement or recreational establishments can qualify for exemptions from overtime if they limit operations to certain times of the year. Employers should confirm that workers in such roles truly qualify for these special statuses and keep records detailing the nature of their business operations, operating hours, and how wages are calculated.
• Home Care and Domestic Service Employees: Pennsylvania enforces various provisions regarding home care workers and individuals who provide in-home support. The FLSA has evolved in this arena, and Pennsylvania regulators may interpret these rules distinctly. Employers should confirm that workers whose primary roles involve companionship services or domestic tasks meet any relevant exemptions or coverage requirements.
• Healthcare Facilities: Healthcare workers may be subject to alternative pay structures due to shifts spanning more than the standard 40-hour week. Employers should track scheduling practices, mandatory overtime restrictions (in some healthcare settings), and any state-issued guidance for consistent wage-and-hour compliance.

The Pennsylvania Department of Labor & Industry can offer clarifications that differ from federal agency guidance. Employers operating in these sectors should adhere to both federal and Pennsylvania requirements to avoid complications during audits or investigations. If you need guidance on exemptions or pay compliance in your specific sector, consider consulting an attorney in Scranton, Pennsylvania.

Independent Contractors vs. Employees

In Pennsylvania, an individual is presumed to be an employee unless the relationship meets specific tests indicating genuine independence. Employers must assess factors such as who controls the means and manner of work, whether the worker has an independent business, and whether the worker has the opportunity to realize a profit or loss. Misclassification can expose businesses to back pay obligations, tax liabilities, penalties, and coverage issues under workers’ compensation and unemployment compensation programs.

Filing Complaints and Enforcement

Pennsylvania employees alleging wage-and-hour violations can file complaints with the Pennsylvania Department of Labor & Industry, Bureau of Labor Law Compliance. Employees generally must provide details on the alleged violation, pay records, hours, and other facts relevant to their claim. The bureau may investigate, conduct interviews, and request payroll documentation from the employer.

Under Pennsylvania’s WPCL, employees also have a private right of action to recover unpaid wages or fringe benefits that an employer has agreed to provide. Unlike federal enforcement actions, a successful claim under the WPCL can allow the recovery of certain costs and attorney’s fees. Additionally, if a violation is deemed willful, employees may pursue liquidated damages in an amount equal to the unpaid wages. Employers that fail to comply with these laws may face back pay awards, civil penalties, and other legal consequences.

Recordkeeping Requirements

Proper recordkeeping is critical for ensuring compliance and defending against wage disputes. Employers in Pennsylvania typically follow the same types of recordkeeping practices required under the FLSA. These practices include tracking daily and weekly hours, overtime calculations, tip allocations, pay rates, and any other premium pay. Employers should maintain these records for at least three years. With the WPCL’s three-year statute of limitations, having complete and accurate records is especially important. Robust timekeeping systems—whether digital or manual—help avert discrepancies regarding hours worked, break periods, and wage calculations.

Practical Considerations for Employers and Employees

Both employers and employees benefit from a thorough grasp of Pennsylvania’s wage-and-hour requirements. Employers can reduce liability risks by regularly reviewing job descriptions, pay practices, and exemption classifications. As legislation evolves, timely updates to policies and handbooks are crucial. When it comes to tipped employees, clarifying tip pooling arrangements and ensuring compliance with tip credit rules can eliminate misunderstandings. Industries with specialized rules—such as agriculture, hospitality, and healthcare—should confirm that their unique practices satisfy both state and federal standards.

Employees, on the other hand, should understand their rights to minimum wage, access to break periods if under 18, correct overtime payments, and the right to retain tips unless part of a legitimate tip pool. Tracking hours worked and verifying accuracy of pay stubs can help detect any shortfalls in pay. When concerns persist, Pennsylvania law provides multiple avenues for seeking recourse, including filing a complaint with the Department of Labor & Industry or initiating a private action under the WPCL or PMWA.

By staying attuned to statutory changes, properly classifying workers, and applying consistent payroll practices, employers maintain compliance and foster greater trust in the workplace. Employees who remain informed and pay close attention to their pay records can quickly address discrepancies. Through collaborative efforts, both parties can better ensure fair compensation and adherence to the various legal obligations applying in Pennsylvania. A Scranton, Pennsylvania lawyer can answer questions and help clarify wage and hour obligations for both workers and employers.

Assistance With Legal Issues in the Workplace

Difficulties with overtime pay, minimum wage calculations, worker classifications, and other wage-related concerns can escalate quickly if not addressed with care. Polishan Solfanelli in Scranton, Pennsylvania offers guidance to both employers and employees navigating these complex regulatory frameworks. Our experienced local lawyers understand how nuanced federal and state rules affect your workplace, and we focus on protecting your rights. Whether you suspect unpaid wages, have questions about tip credits, or are uncertain about employee classifications, we strive to give clear insights consistent with Pennsylvania law. By staying current on developments in wage and hour requirements, we help clients maintain compliance and resolve disputes when they arise. Reach out to us at 570-562-4520 to fully discuss your circumstances. We are prepared to assist you in understanding your responsibilities, evaluating your legal options, and pursuing the most suitable path for your wage and hour concerns so you can move forward with confidence.