The rule
| Pennsylvania | |
|---|---|
| Weekly threshold | Over 40 hours in a workweek: not less than 1.5 times the regular rate |
| Daily threshold | None. Overtime is counted by the workweek |
| Salaried, nonexempt employees | Pennsylvania finds the regular hourly rate by dividing the weekly salary by 40 hours, then pays 1.5 times that rate for hours over 40 |
| Who is covered | Hourly employees and salaried employees who do not perform executive, administrative, or professional duties, or who earn below the federal salary threshold |
| Exemptions | Occupations exempted by the Pennsylvania Minimum Wage Act or the FLSA, including bona fide executive, administrative, and professional employees |
| Health care facilities | May use the 8-and-80 method under Act 109: overtime after 8 hours in a day or 80 hours in a 14-day period |
Where Pennsylvania differs from the federal rule
The threshold is the same 40 hours, but Pennsylvania's regular-rate rule for salaried nonexempt employees is stricter than the federal one. The Department of Labor and Industry states that the regular hourly rate is found by dividing the employee's total weekly earnings by 40 hours, not by the hours actually worked. A $600 salary for a 50-hour week gives a $15 regular rate and $22.50 for each of the 10 overtime hours, which is more than the federal fluctuating-workweek method would produce.
The Department also notes that an announcement that no overtime will be permitted, or that only pre-approved overtime will be paid, does not cancel the duty to pay for hours actually worked. The regular rate can never be below the Pennsylvania minimum wage, currently $7.25 an hour.
Worked example: a 15-person restaurant with a salaried nonexempt shift lead
A shift lead is paid a $700 weekly salary, is not exempt, and works 46 hours.
- Regular rate under Pennsylvania's rule: $700 divided by 40 hours, or $17.50.
- Overtime: 6 hours at $26.25 (1.5 times $17.50), or $157.50. Gross for the week: $857.50.
- An hourly cook at $18 working the same 46 hours gets 40 hours at $18 ($720) plus 6 hours at $27 ($162), or $882. Neither employee earns anything extra for a single 11-hour day; only the weekly total matters.
How to track it
Pennsylvania overtime turns on the weekly total, so the clock has to define the workweek the same way payroll does and count everything that is hours worked, including short paid breaks and pre-shift setup. Salaried nonexempt staff need their hours recorded like everyone else, because the salary does not settle the overtime.
ClockOut shows each employee's week-to-date total on every punch, flags anyone projected to pass 40 before the week ends, and exports hours by employee so a salaried lead's overtime can be calculated on the state's divide-by-40 rule.
Pennsylvania overtime FAQ
Does Pennsylvania have daily overtime?
No, except for health care facilities that choose the 8-and-80 method under Act 109. Everyone else counts overtime by hours over 40 in the workweek.
Do salaried employees get overtime in Pennsylvania?
Often, yes. A salaried employee who does not perform executive, administrative, or professional duties, or who earns below the federal salary threshold, is owed overtime for hours over 40. The regular rate is the weekly salary divided by 40.
Can an employer refuse to pay unapproved overtime?
No. The Department of Labor and Industry says an announcement that overtime will not be paid unless authorized does not cancel the obligation. Discipline the scheduling issue, but pay the hours.
Do tips change the overtime rate?
Tipped employees earn overtime on their full regular rate, not on the reduced cash wage. The employer must also make sure base wage plus tips reaches at least $7.25 an hour in every workweek.
Related pages
Sources, checked September 9, 2026
- Pennsylvania DLI: Overtime and tipped worker rules in PA
- Pennsylvania DLI: Wage FAQs (Minimum Wage Act)
This is general information, not legal advice. Rules change; check the linked source.