🇺🇸 Pennsylvania Overtime Laws — 2026 UPDATE

Overtime Laws in Pennsylvania 2026: Pay Rates, Exemptions & Tax Deduction (2026)

⚠️Informational only — not legal or tax advice.

This guide explains Pennsylvania overtime laws 2026

Last verified: February 26, 2026

Next scheduled review: May 25, 2026

overtime in Pennsylvania 2026

Table of Contents

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Pennsylvania Overtime Laws at a Glance (2026)

Details
Overtime threshold 40 hours per workweek
Overtime pay rate 1.5× regular rate of pay
Double time No — not required under Pennsylvania or federal law
7th consecutive day rule No
State minimum wage (2026) $7.25/hour (matches federal minimum)
Exempt salary threshold (2026) Federal: $684/week ($35,568/yr)
Daily overtime No — weekly calculation only
State enforcement agency Pennsylvania Department of Labor & Industry — Bureau of Labor Law Compliance
Federal enforcement U.S. DOL Wage and Hour Division
Overtime tax deduction (federal) Up to $12,500/yr (2025–2028) — FLSA-covered workers
Statute of limitations 3 years (PMWA) / 2 years FLSA (3 if willful)

Governing law: Pennsylvania Minimum Wage Act of 1968, 43 P.S. §§ 333.101–333.115; 34 Pa. Code Chapter 231; Fair Labor Standards Act, 29 U.S.C. § 207 Last verified: February 26, 2026

Does Pennsylvania Have Its Own Overtime Law?

Pennsylvania has its own overtime law under the Pennsylvania Minimum Wage Act of 1968 (PMWA), codified at 43 P.S. §§ 333.101–333.115, with implementing regulations at 34 Pa. Code Chapter 231.

The PMWA closely tracks the federal Fair Labor Standards Act (FLSA) in its core overtime requirement — nonexempt employees must receive overtime pay at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. However, Pennsylvania law includes several provisions that differ from or exceed federal standards.

When PMWA and federal FLSA rules differ, the standard that is more favorable to the employee applies.

Key differences between Pennsylvania and federal overtime law:

  • Statute of limitations: Under the PMWA, employees have 3 years to bring an overtime claim, regardless of whether the violation was willful. Under the FLSA, the limit is 2 years (3 years only for willful violations). Employees in Pennsylvania typically benefit from the longer state deadline.
  • No fluctuating workweek method: Pennsylvania regulations (34 Pa. Code § 231.43) do not permit employers to use the FLSA’s fluctuating workweek method for salaried nonexempt employees. The regular rate for salaried employees must be calculated by dividing total weekly compensation by 40 hours — not by actual hours worked.
  • Computer employees: Under federal law, certain computer professionals may be exempt from overtime. Under the PMWA, computer employees are not among the recognized exemptions and may be entitled to overtime under state law even if exempt under the FLSA.
  • Public employers: The PMWA expressly excludes public employers (state agencies, counties, municipalities, school districts). Public-sector employees in Pennsylvania are covered by the FLSA, not the PMWA.
  • Healthcare mandatory overtime: Pennsylvania’s Act 102 (43 Pa. C.S. § 932) restricts the ability of health care facilities to require overtime for direct patient care workers — a protection with no federal equivalent.

State statute: Pennsylvania Minimum Wage Act of 1968 — https://www.legis.state.pa.us/cfdocs/legis/LI/uconsCheck.cfm?txtType=HTM&yr=1968&sessInd=0&smthLwInd=0&act=5 State regulations: 34 Pa. Code Chapter 231 — https://www.pacodeandbulletin.gov/Display/pacode?file=/secure/pacode/data/034/chapter231/chap231toc.html Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 — https://www.dol.gov/agencies/whd/overtime

How Overtime Pay Is Calculated in Pennsylvania

What Is a “Workweek”?

Under the FLSA and PMWA, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). The employer may designate any day and time as the start of the workweek — it does not need to begin on Monday or align with a calendar week.

Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours in one week and 30 the next, overtime is owed for the first week regardless of the second.

Source: 29 C.F.R. § 778.104–778.105

Pay Rates

Under the PMWA and the FLSA, nonexempt employees in Pennsylvania earn overtime at the following rate:

Time-and-a-half (1.5× regular rate):

  • All hours worked over 40 in a workweek

Pennsylvania does not require daily overtime or double-time pay. Overtime is triggered solely by the 40-hour weekly threshold.

What Counts as the “Regular Rate of Pay”

Pennsylvania regulations define the regular rate as the amount an employee is regularly paid for each hour of work. It cannot be less than the applicable minimum wage. Under 34 Pa. Code § 231.43 and 29 C.F.R. § 778.108, the regular rate includes:

  • Base hourly rate
  • Non-discretionary bonuses and incentive pay
  • Shift differentials
  • Commissions
  • Piece-rate earnings

The regular rate does not include:

  • Discretionary bonuses (e.g., holiday gifts not part of any agreement)
  • Employer contributions to benefit plans
  • Vacation, holiday, or sick pay for time not worked

Important — Pennsylvania salaried employees: For a nonexempt salaried employee, Pennsylvania requires the regular rate to be calculated by dividing the weekly salary by 40 hours (not by the actual number of hours worked). This differs from the FLSA’s fluctuating workweek method, which is not permitted under the PMWA.

Source: 34 Pa. Code § 231.43; Pennsylvania Department of Labor & Industry — https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/labor-law/overtime-and-tipped-worker-rules-in-pa

Calculation Example

Example — Weekly overtime in Pennsylvania (hourly employee):

An employee earns $7.25/hour (Pennsylvania minimum wage) and works 48 hours in one workweek:

  • Regular pay: 40 hours × $7.25 = $290.00
  • Overtime pay: 8 hours × ($7.25 × 1.5) = 8 × $10.88 = $87.04
  • Total weekly gross pay: $377.04

Example — Weekly overtime in Pennsylvania (salaried nonexempt employee):

An employee earns a weekly salary of $600 and works 50 hours in one workweek:

  • Regular rate: $600 ÷ 40 hours = $15.00/hour
  • Regular pay (included in salary): $600.00
  • Overtime pay: 10 hours × ($15.00 × 0.5) = 10 × $7.50 = $75.00
  • Total weekly gross pay: $675.00

Note: For salaried nonexempt employees under the PMWA, the salary covers the first 40 hours. The additional half-time premium is owed for all overtime hours. Employers cannot use the fluctuating workweek method, which would calculate the premium at 0.5× a declining regular rate.

Source: 34 Pa. Code § 231.43; 34 Pa. Code § 231.41; 29 C.F.R. § 778.108

For the current Pennsylvania minimum wage used in this calculation, see [Pennsylvania Minimum Wage page].

Who Is Exempt from Overtime in Pennsylvania?

Not all employees in Pennsylvania are entitled to overtime pay. Certain employees are classified as “exempt” under federal and/or state law.

Federal FLSA Exemption Requirements

To be exempt from overtime under the FLSA, an employee must meet all three criteria:

1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)

2. Salary level test: Earn at least $684 per week ($35,568 per year)

3. Duties test: Perform specific job duties in one of these categories:

Exemption
Exemption Key duty requirement
Executive Manages enterprise or department; directs 2+ employees; authority to hire/fire
Administrative Office/non-manual work related to management or business operations; exercises independent judgment
Professional Work requiring advanced knowledge in science or learning (prolonged specialized study)
Computer employee Systems analysis, programming, software engineering — $684/week salary OR $27.63/hour
Outside sales Primary duty is making sales away from employer's place of business

Source: 29 C.F.R. Part 541

Pennsylvania PMWA Exemption Requirements

The PMWA’s executive, administrative, and professional (EAP) exemptions largely align with the FLSA following regulatory updates effective August 5, 2022 (34 Pa. Code Chapter 231). However, there are important differences:

  • Computer employees are NOT exempt under the PMWA. Unlike the FLSA, the PMWA does not include a computer employee exemption. Computer professionals in Pennsylvania may be entitled to overtime under state law even if their employer treats them as exempt under federal law.
  • Job titles do not determine exempt status under either Pennsylvania or federal law. The actual duties performed by the employee control.
  • Public employers: Pennsylvania’s PMWA excludes public employers. State and local government employees are covered exclusively by the FLSA.

Source: Pennsylvania Department of Labor & Industry — https://www.pa.gov/content/dam/copapwp-pagov/en/dli/documents/individuals/labor-management-relations/llc/minimum-wage/documents/min-wage-exemption.pdf

What Happened to the 2024 DOL Salary Threshold Increase?

In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) effective January 1, 2025.

On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).

The salary threshold remains $684/week ($35,568/year) as of 2026. Pennsylvania’s own threshold under the PMWA aligns with this federal level following the 2022 regulatory update.

Source: Pennsylvania Department of Labor & Industry Wage FAQs — https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/pennsylvania-s-minimum-wage-act/wage-faqs

Additional Pennsylvania-Specific Exemptions

The PMWA includes certain exemptions beyond the standard EAP categories. Under 43 P.S. § 333.105, overtime exemptions also apply to:

  • Taxicab drivers
  • Seamen
  • Salespersons, partspersons, or mechanics primarily engaged in selling or servicing automobiles, trucks, or farm implements
  • Employees of movie theaters
  • Individuals engaged in the processing of maple sap into syrup or sugar

These exemptions are specific to Pennsylvania law. Employers and employees in these categories should verify applicability with the Pennsylvania Department of Labor & Industry.

Source: 43 P.S. § 333.105; 34 Pa. Code Chapter 231

Pending Pennsylvania Legislation: HB 1549 — Minimum Wage Increase

The Pennsylvania House of Representatives passed House Bill 1549 on June 11, 2025 (102–101), which would amend the Pennsylvania Minimum Wage Act to increase the statewide minimum wage on a tiered basis by county population. Key provisions:

  • Philadelphia (1st class county): $15.00/hour beginning January 1, 2026
  • Next 16 most populous counties (including Allegheny): $12.00/hour in 2026, rising to $15.00 by 2028
  • Remaining 47 counties: $10.00/hour in 2026, rising to $12.00 by 2028
  • Annual cost-of-living adjustments for all counties starting January 1, 2029

As of February 2026, the bill has been referred to the Senate Labor and Industry Committee and has not been enacted. Pennsylvania’s minimum wage remains $7.25/hour.

Source: https://www.palegis.us/legislation/bills/2025/hb1549

Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)

The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225.

This deduction is available for tax years 2025 through 2028.

Who Is Eligible

  • Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
  • Must have a Social Security number valid for employment
  • Cannot use the Married Filing Separately filing status

Who is NOT eligible:

  • Exempt (salaried) employees who do not receive FLSA overtime
  • Independent contractors (1099 workers) who are not FLSA-covered
  • Employees receiving overtime only under state law, employer policy, or collective bargaining (if that overtime is not also required by the FLSA)

What Is Deductible

The deduction covers the premium portion of overtime pay — the amount that exceeds the regular rate of pay.

Overtime Tax Deduction — Example Calculation
Overtime type What is deductible Example ($15/hr regular rate)
Time-and-a-half (1.5×) The "half" — 1/3 of total OT pay $7.50/hr per OT hour ($22.50 − $15.00)
Double time (2×) The "full extra" — 1/2 of total OT pay $15.00/hr per OT hour ($30.00 − $15.00)

IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3.

Source: IRS Notice 2025-69

Deduction Limits
Filing status Maximum annual deduction Phase-out begins
Single $12,500 $150,000 MAGI
Married filing jointly $25,000 $300,000 MAGI
W-2 Reporting
Tax year Employer reporting requirement
2025 NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUAL OT" or provide a separate statement.
2026 and later REQUIRED to separately report qualified overtime compensation. Draft IRS guidance indicates Box 12, Code TT will be used (draft form, subject to change before finalization).

If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay for time-and-a-half workers, or payroll records showing overtime hours and rates.

What This Deduction Does NOT Do

  • Does NOT exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
  • Does NOT apply to Pennsylvania state income taxes — Pennsylvania taxes all wages, including overtime, at the standard flat rate
  • Does NOT change the amount of overtime pay received — it reduces federal taxable income when filing
  • Does NOT apply to overtime paid solely under Pennsylvania state law or employer policy beyond FLSA requirements

Source: IRS FAQs on Qualified Overtime Compensation Deduction — https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202; Schedule 1-A (Form 1040)

Pennsylvania Income Tax and Overtime

Pennsylvania imposes a flat 3.07% personal income tax on all wages, including overtime pay. The federal overtime deduction reduces federal taxable income only — it has no effect on Pennsylvania state income tax obligations.

Pending Pennsylvania legislation — HB 1586: The Pennsylvania House Republican caucus introduced HB 1586 (2025–2026 session), which would provide a tax credit against Pennsylvania state income taxes for taxes paid on overtime compensation. As of February 2026, the bill remains in the House Finance Committee and has not been enacted. If passed, it would take effect for tax years beginning after December 31, 2025.

Source: Pennsylvania General Assembly — https://www.palegis.us; Pennsylvania Department of Revenue personal income tax information — https://www.revenue.pa.gov

For full Pennsylvania income tax details, see [Pennsylvania Income Tax page].

Can an Employer Require Overtime in Pennsylvania?

Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated for all overtime hours. Similarly, neither the PMWA nor the FLSA sets a maximum on overtime hours employers can require.

An employer may discipline or terminate an at-will employee who refuses to work overtime, unless a specific law, employment contract, or collective bargaining agreement provides otherwise.

Pennsylvania-specific protection: Healthcare workers — Act 102

Pennsylvania has enacted a significant restriction on mandatory overtime for a specific category of workers: the Prohibition of Excessive Overtime in Health Care Act (Act 102), 43 Pa. C.S. § 932.

Under Act 102, health care facilities cannot require covered employees to work beyond their agreed-upon, predetermined, and regularly scheduled shifts. Employees subject to Act 102 include those involved in direct patient care or clinical care services who receive an hourly wage or are classified as nonsupervisory employees for collective bargaining purposes. This includes nurses, laboratory staff, and radiology/diagnostic imaging workers.

Mandatory overtime is prohibited under Act 102 except for:

  • Unforeseeable emergent circumstances (as specifically defined by the law)
  • Cases where an employee must complete a patient care procedure already in progress at shift end and the employee’s absence would adversely affect the patient
  • On-call time as specifically permitted by the law

Act 102 does not apply to physicians, physician assistants, dentists, or workers in environmental services, clerical, maintenance, or food service positions.

Employers who violate Act 102 may be subject to administrative fines of $100 to $1,000 per violation.

Source: Pennsylvania Department of Labor & Industry, Act 102 — https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/labor-law/act-102

Protections That Always Apply

Regardless of mandatory overtime policies, the following protections apply in Pennsylvania:

  • All overtime hours must be compensated at the applicable overtime rate (1.5× regular rate for hours over 40/week)
  • Employers cannot retaliate against employees who file wage complaints (29 U.S.C. § 215(a)(3); 43 P.S. § 333.113)
  • Disability accommodation requests under the ADA may limit overtime requirements
  • Child labor laws restrict hours for employees under 18

Source: 29 U.S.C. § 207; 43 P.S. § 333.101 et seq.; 43 Pa. C.S. § 932

Industry-Specific Overtime Rules in Pennsylvania

Healthcare — Act 102 and the 8-and-80 System

Mandatory overtime restrictions (Act 102): Health care facilities are prohibited from mandating overtime for direct patient care and clinical care workers beyond their scheduled shifts, except in defined emergency circumstances. See Section 6 above for details.

Source: 43 Pa. C.S. § 932 — https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/labor-law/act-102

8-and-80 overtime system: Pennsylvania adopted the FLSA’s 8-and-80 rule for healthcare via Act 109 of 2012, amending the PMWA. Hospitals and residential care facilities may enter into an agreement with employees to use a 14-day work period rather than the standard 7-day workweek. Under this system, overtime is owed when an employee works more than 8 hours in any workday and more than 80 hours in the 14-day period.

An employer using the 8-and-80 system must pay whichever calculation results in more overtime pay to the employee.

Source: 43 P.S. § 333.104; Pennsylvania Department of Labor & Industry Wage FAQs — https://www.pa.gov/agencies/dli/resources/compliance-laws-and-regulations/labor-management-relations/pennsylvania-s-minimum-wage-act/wage-faqs; 29 U.S.C. § 207(j)

Public Sector / Government Employees

The PMWA expressly excludes public employers, including state agencies, counties, municipalities, and school districts. Public-sector employees in Pennsylvania are covered exclusively by the FLSA.

Under 29 U.S.C. § 207(o), public employers may offer compensatory time off at 1.5 hours per overtime hour worked instead of overtime pay, provided:

  • A prior agreement exists between the employer and employee (or union)
  • Comp time accrues at 1.5 hours for each overtime hour
  • The cap is 240 hours of accrued comp time for most employees (or 480 hours for public safety, emergency response, and seasonal workers)

Source: 29 U.S.C. § 207(o); 43 P.S. § 333.103(g)

Compensatory Time (“Comp Time”) Rules — Private Sector

Under the FLSA and PMWA, private-sector employers cannot offer comp time in lieu of overtime pay. An employee who works overtime hours must be compensated at 1.5× their regular rate in wages for that week, not in future time off.

This prohibition is further reinforced by 34 Pa. Code § 231.41, which states that overtime hours worked in a workweek may not be offset by compensatory time off in any prior or subsequent workweek.

Source: 34 Pa. Code § 231.41; 29 U.S.C. § 207

Retail and Commission Employees

Under 29 U.S.C. § 207(i), retail or service employees paid more than half their earnings in commissions may be exempt from FLSA overtime requirements if their regular rate exceeds 1.5× the applicable minimum wage. This exemption applies to employees of retail or service establishments as defined by the FLSA.

Source: 29 U.S.C. § 207(i)

Transportation — Motor Carrier Exemption

Employees whose duties affect the safe operation of motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption (49 U.S.C. § 31502). This exemption applies when the U.S. Secretary of Transportation has the power to establish maximum hours for the employee’s position.

Source: 29 U.S.C. § 213(b)(1); 49 U.S.C. § 31502

How to File an Overtime Wage Complaint in Pennsylvania

Employees in Pennsylvania who believe they have not received proper overtime pay have three options:

Option 1: Pennsylvania Department of Labor & Industry

Details
Agency Pennsylvania Department of Labor & Industry, Bureau of Labor Law Compliance
Online filing https://www.pa.gov/services/dli/file-a-minimum-wage-and-overtime-complaint
Phone 1-800-932-0665
Fax 717-787-0517
Email RA-LI-SLMR-LLC@pa.gov
Mail Bureau of Labor Law Compliance,
1301 Labor and Industry Building,
651 Boas Street,
Harrisburg, PA 17121
Deadline 3 years from the date the wage was earned (PMWA)

The form may be submitted online, by fax, email, or mail. A Spanish-language version of the complaint form is available.

Source: https://www.pa.gov/services/dli/file-a-minimum-wage-and-overtime-complaint

Option 2: U.S. Department of Labor — Wage and Hour Division

Details
Online https://www.dol.gov/agencies/whd/contact/complaints
Phone 1-866-487-9243 (toll-free)
Deadline 2 years from violation (3 years if willful)

Source: https://www.dol.gov/agencies/whd/overtime

Option 3: Private Lawsuit

Employees may file a lawsuit against their employer in state or federal court under:

  • FLSA (29 U.S.C. § 216(b)): back wages, liquidated damages equal to unpaid wages, and reasonable attorney’s fees
  • PMWA (43 P.S. § 333.113): back wages, prejudgment interest, and attorney’s fees. Note that the PMWA does not provide for liquidated damages; however, a concurrent claim under the Pennsylvania Wage Payment and Collection Law (WPCL), 43 P.S. § 260.1 et seq., may allow recovery of liquidated damages of 25% of unpaid wages (or $500, whichever is greater) if wages remain unpaid for more than 30 days.

Employees may file claims simultaneously under both the PMWA and the FLSA, taking advantage of the protections offered by each.

Source: 29 U.S.C. § 216(b); 43 P.S. § 333.113; 43 P.S. § 260.9a

Retaliation Protection

Under both the FLSA (29 U.S.C. § 215(a)(3)) and the PMWA, employers cannot retaliate against employees for:

  • Filing an overtime wage complaint
  • Participating in a wage investigation
  • Testifying in proceedings related to overtime violations
  • Contacting an attorney about unpaid wages

Source: 29 U.S.C. § 215(a)(3); 43 P.S. § 333.113; Pennsylvania Department of Labor & Industry — https://www.pa.gov/agencies/dli/programs-services/labor-management-relations/labor-law-compliance

Penalties for Overtime Violations in Pennsylvania

Federal FLSA Penalties
Penalty type Amount
Back wages Full amount of unpaid overtime owed
Liquidated damages Equal to unpaid wages (effectively doubles recovery)
Civil monetary penalty Up to $2,451 per violation (willful/repeated — adjusted annually by DOL)
Criminal prosecution Willful: fines up to $10,000; second offense: up to 6 months imprisonment

Source: 29 U.S.C. § 216

Pennsylvania PMWA Penalties

Under 43 P.S. § 333.113, an employee who prevails on an overtime claim under the PMWA may recover:

  • Back wages: Full amount of overtime wages owed
  • Prejudgment interest: Accruing on unpaid wages
  • Attorney’s fees and court costs

The PMWA does not provide for liquidated damages. However, an employee who also files under the Pennsylvania Wage Payment and Collection Law (WPCL), 43 P.S. § 260.10, may recover an additional liquidated damages penalty equal to 25% of total wages due, or $500, whichever is greater, if wages remain unpaid for 30 days beyond the regularly scheduled payday and there is no good-faith dispute.

Recovery Sources
Recovery source What's available
PMWA (43 P.S. § 333.113) Back wages + interest + attorney's fees
FLSA (29 U.S.C. § 216(b)) Back wages + equal liquidated damages + attorney's fees
WPCL (43 P.S. § 260.10) 25% penalty (or $500, whichever greater) + attorney's fees

Because claims may be brought simultaneously under the PMWA and FLSA, employees may maximize recovery by pursuing both state and federal remedies.

Source: 43 P.S. § 333.113; 43 P.S. § 260.10; 29 U.S.C. § 216

Pennsylvania Overtime Law Updates (2025–2026)

Federal Changes Affecting Pennsylvania

  • July 4, 2025: One Big Beautiful Bill Act signed — created federal overtime tax deduction for tax years 2025–2028 (IRC § 225; P.L. 119-21)
  • November 21, 2025: IRS issued Notice 2025-69 providing individual calculation guidance for the overtime deduction; and Notice 2025-62 providing employer reporting transition relief for 2025
  • November 15, 2024: DOL salary threshold rule vacated by U.S. District Court (Eastern District of Texas) — exempt threshold remains $684/week ($35,568/year)

Pennsylvania Changes

  • August 5, 2022: Updated PMWA regulations took effect (34 Pa. Code Chapter 231), modernizing the EAP exemption duties tests, aligning them with FLSA standards, and revising rules for tipped employees and salaried nonexempt workers
  • 2012: Pennsylvania adopted the 8-and-80 overtime system for healthcare employers via Act 109, amending the PMWA

Pending Pennsylvania Legislation

HB 1549 — Minimum Wage Act Amendment (tiered minimum wage increase): Passed the Pennsylvania House of Representatives 102–101 on June 11, 2025. Would increase the minimum wage to $15/hour in first-class counties (Philadelphia) by 2026, $15 in the next tier of counties by 2028, and $12 in remaining counties by 2028. As of February 2026, referred to the Senate Labor and Industry Committee; not yet enacted. If passed and signed, it would raise the overtime rate proportionally. Source: https://www.palegis.us/legislation/bills/2025/hb1549

HB 1586 — State Overtime Tax Credit: A Pennsylvania House Republican bill that would provide a tax credit against Pennsylvania state income taxes for taxes paid on overtime compensation. As of February 2026, in the House Finance Committee; not yet enacted. If passed, it would be effective for tax years beginning after December 31, 2025. Source: https://www.palegis.us

Last reviewed: February 26, 2026 Next scheduled review: May 27, 2026

Frequently Asked Questions About Overtime in Pennsylvania

Does Pennsylvania have overtime laws?

Yes. Pennsylvania has its own overtime law — the Pennsylvania Minimum Wage Act of 1968 (PMWA), 43 P.S. §§ 333.101–333.115, with implementing regulations at 34 Pa. Code Chapter 231. The PMWA requires nonexempt employees to receive overtime pay at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. In several areas — including the statute of limitations and the prohibition on the fluctuating workweek method — the PMWA provides greater protections than the FLSA.

What is the overtime rate in Pennsylvania in 2026?

The overtime rate in Pennsylvania is 1.5 times the employee’s regular rate of pay for all hours over 40 in a workweek. Based on the current Pennsylvania minimum wage of $7.25/hour, the minimum overtime rate is $10.88/hour. Pennsylvania does not require double-time pay.

Does Pennsylvania require daily overtime?

No. Overtime in Pennsylvania is calculated on a weekly basis only. Working more than 8 hours in a single day does not trigger overtime unless total hours in the workweek exceed 40. The only exception is the 8-and-80 system available to healthcare employers by agreement, which triggers overtime after 8 hours in a workday within a 14-day pay period.

Is mandatory overtime legal in Pennsylvania?

Under federal law and the PMWA, employers can generally require adult employees to work overtime. Pennsylvania does not have a general statewide restriction on mandatory overtime for most workers. However, healthcare workers in direct patient care roles are protected under Act 102 (43 Pa. C.S. § 932), which prohibits health care facilities from requiring those workers to exceed their regularly scheduled shifts except in defined emergencies.

Am I exempt from overtime in Pennsylvania?

Exemption depends on both salary level and job duties. Under the FLSA and PMWA, employees must earn at least $684/week on a salary basis AND perform executive, administrative, or professional duties meeting specific criteria. Job titles do not determine exempt status — actual duties do. Additionally, computer employees are not exempt under the PMWA, even if they would qualify for an exemption under the FLSA.

Can salaried employees get overtime in Pennsylvania?

Yes. Being paid a salary does not automatically make an employee exempt from overtime. Salaried employees who earn less than $684/week, or who do not meet the duties tests, are entitled to overtime pay. Under the PMWA, the regular rate for a salaried nonexempt employee is calculated by dividing the weekly salary by 40 hours — the fluctuating workweek method is not permitted in Pennsylvania.

Is overtime taxed in Pennsylvania?

Overtime pay is subject to both federal income tax and Pennsylvania’s 3.07% flat state income tax. However, under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500/year ($25,000 for joint filers) of the premium portion of overtime from federal taxable income only. This deduction does not apply to Pennsylvania state income taxes. Pending state legislation (HB 1586) would provide a state tax credit for overtime, but it has not been enacted as of February 2026.

How do I calculate the overtime tax deduction?

For time-and-a-half pay, the deductible amount (qualified overtime compensation) is one-third of total overtime pay received. For example, if you earned $9,000 in total overtime pay at time-and-a-half rates, the deductible qualified overtime compensation is $3,000. The IRS confirms this calculation method in Notice 2025-69. Claim the deduction on Schedule 1-A of Form 1040.

How do I file an overtime complaint in Pennsylvania?

File a wage claim online with the Pennsylvania Department of Labor & Industry, Bureau of Labor Law Compliance at https://www.pa.gov/services/dli/file-a-minimum-wage-and-overtime-complaint, or call 1-800-932-0665. You may also file with the U.S. Department of Labor Wage and Hour Division at https://www.dol.gov/agencies/whd/contact/complaints or by calling 1-866-487-9243.

Can my employer fire me for refusing overtime in Pennsylvania?

In most cases, yes. Pennsylvania is an at-will employment state, and employers may discipline or terminate employees who refuse to work overtime, unless a contract or collective bargaining agreement provides otherwise. However, healthcare workers protected by Act 102 may refuse mandatory overtime outside defined emergencies without fear of retaliation — an employer cannot discipline or discharge a covered healthcare employee for exercising rights under Act 102. No employee may be retaliated against for filing an overtime complaint.

Can my employer give comp time instead of overtime pay in Pennsylvania?

Under the FLSA and PMWA, private-sector employers cannot offer comp time in lieu of overtime pay. Employees who work more than 40 hours in a workweek must be paid time-and-a-half in wages for those overtime hours. Public-sector employers may offer comp time at 1.5 hours per overtime hour under the FLSA, up to 240 hours accrued (480 hours for public safety and emergency workers). The PMWA does not apply to public employers.

Does working on weekends or holidays count as overtime in Pennsylvania?

No. Under both the FLSA and PMWA, working on weekends or holidays does not automatically constitute overtime. Overtime depends on total hours worked in the workweek, regardless of which days those hours fall on. An employer may voluntarily pay a premium for weekend or holiday work, but is not required to do so by Pennsylvania or federal law.

What happens if my employer doesn’t pay overtime in Pennsylvania?

Employees may file a complaint with the Pennsylvania Department of Labor & Industry or the U.S. DOL Wage and Hour Division, or bring a private lawsuit. Under the FLSA (29 U.S.C. § 216(b)), recovery includes back wages plus equal liquidated damages plus attorney’s fees. Under the PMWA (43 P.S. § 333.113), recovery includes back wages plus interest plus attorney’s fees (no liquidated damages under state law). A concurrent WPCL claim may add a 25% penalty on unpaid wages if payment is more than 30 days overdue.

What is the statute of limitations for overtime claims in Pennsylvania?

Under the PMWA: 3 years from the date wages were earned, regardless of whether the violation was willful. Under the FLSA: 2 years (3 years if the violation is willful). Because the PMWA provides the longer and more favorable limitation period, employees in Pennsylvania generally have 3 years to bring a state overtime claim.

Are computer programmers and IT workers entitled to overtime in Pennsylvania?

This depends on which law applies. Under the FLSA, certain computer professionals earning at least $684/week or $27.63/hour may be exempt. However, the PMWA does not include a computer employee exemption. Private-sector computer professionals in Pennsylvania may be entitled to overtime under state law even if their employer considers them exempt under federal law.

Do healthcare workers have special overtime protections in Pennsylvania?

Yes. Pennsylvania’s Act 102 (Prohibition of Excessive Overtime in Health Care Act, 43 Pa. C.S. § 932) prohibits health care facilities from mandating overtime for employees in direct patient care or clinical care roles beyond their scheduled shifts, except in narrowly defined emergency circumstances. Covered workers include hourly nurses, laboratory personnel, radiology and imaging staff, and other direct care workers. An employer who violates Act 102 may face administrative fines of $100 to $1,000 per violation.

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