Pennsylvania Overtime Rights for Hospitality Employees (Including Daily Overtime Rules)

Pennsylvania Overtime Rights for Hospitality Employees: Key Takeaways

Overtime is required for hours worked over 40 in a workweek; Pennsylvania does not have daily overtime rules.
Hourly hospitality employees generally qualify for overtime pay; salaried employees may be exempt depending on salary and duties.
Tipped employees must earn at least $135 per month in tips and spend 80% of their time on direct tip-producing activities to maintain tipped status.

This article explains Pennsylvania’s overtime laws for hospitality workers, including daily overtime rules and tipped employee protections.

It highlights key regulations affecting hospitality employers and employees to ensure compliance and fair compensation.

1. Pennsylvania Overtime Eligibility for Hospitality Employees

In Pennsylvania, the primary laws governing overtime pay are the federal Fair Labor Standards Act (FLSA) and the Pennsylvania Minimum Wage Act.

These laws require that non-exempt employees receive overtime pay at one and a half times their regular hourly rate for hours worked beyond 40 in a workweek.

Typically, hospitality employees paid hourly are entitled to overtime for all hours in excess of 40 each week.

For salaried employees, eligibility can vary. Employees exempt from overtime pay usually hold executive, administrative, or professional positions and earn above a certain salary threshold.

As of August 5, 2022, the federal salary threshold is $35,568 annually (equivalent to $684 per week). Employees earning below this amount are generally entitled to overtime pay regardless of their job title or duties.

Hospitality employers should be aware of how to hire high performers to ensure compliance with wage laws while maintaining quality teams.

Hourly vs. Salaried Hospitality Workers in Pennsylvania

Hourly workers in restaurants, hotels, and other hospitality settings usually qualify for overtime.

Salaried employees must be evaluated based on job responsibilities and salary levels to determine exemption status.

Employers should carefully review job classifications to avoid misclassifying employees and risking wage violations.

For assistance, consider consulting guides on how to hire a restaurant manager who understands these compliance issues.

2. Daily Overtime Rules for Hospitality Employees in Pennsylvania

Unlike some states, Pennsylvania does not require overtime pay based on hours worked in a single day.

Overtime compensation is calculated only on the basis of hours worked beyond 40 in a workweek.

This means an employee working, for example, 12 hours in one day but a total of 36 hours in the week would not receive overtime for that long day.

Employers should therefore focus on weekly tracking rather than daily hours when calculating overtime wages.

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3. Tipped Employee Overtime Rules in Pennsylvania Hospitality Industry

The hospitality sector relies heavily on tipped employees such as servers, bartenders, and valets.

Pennsylvania law requires that tipped employees earn at least $135 per month in tips to qualify as tipped employees.

Additionally, the "80/20 rule" applies: tipped employees must spend at least 80% of their working time performing tip-producing duties.

Non-tipped duties must not exceed 20% of total working hours; otherwise, the employee may lose tipped status and be entitled to the full minimum wage.

Employers must ensure careful scheduling and task assignments to maintain compliance with these requirements.

For employers looking for advice on managing tipped staff, this guide on how to hire servers or waiters offers actionable tips.

4. Compensatory Time and Mandatory Overtime Provisions in Pennsylvania Hospitality

Pennsylvania employers cannot offer compensatory ("comp") time off instead of overtime pay. Any overtime work must be paid at the appropriate overtime rate.

Employers can require hospitality employees to work overtime shifts.

Refusal to work mandatory overtime may lead to disciplinary action or termination, but employees must always be paid correctly for overtime hours worked.

Managing overtime effectively is crucial; see our restaurant manager training checklist for best practices.

5. Recent Developments Impacting Overtime Rights for Hospitality Workers in Pennsylvania

On August 30, 2023, the U.S. Department of Labor proposed raising the overtime salary threshold to $55,068 annually ($1,059 per week).

If finalized, this would expand overtime protections to more hospitality workers, including some currently exempt salaried employees earning between $35,568 and $55,068.

The new rule would also introduce automatic updates every three years to the salary threshold to keep pace with inflation.

Hospitality employers in Pennsylvania should monitor this development closely to prepare for future changes.

For an employer perspective on the evolving labor market, check out restaurant labor shortage.

6. Key Resources for Pennsylvania Hospitality Overtime Rights

For detailed rules, guidelines, and updates, hospitality employers and employees in Pennsylvania can consult these official sources:

Useful resources for employers also include restaurant staff hiring tips to streamline recruitment compliant with wage laws.

01. When is overtime pay required for hospitality employees in Pennsylvania?

Overtime pay is required for hours worked over 40 in a workweek for non-exempt hospitality employees under both federal and Pennsylvania law.

02. Does Pennsylvania have daily overtime rules for hospitality workers?

No, Pennsylvania does not require daily overtime pay. Overtime is calculated only based on hours worked over 40 in a workweek.

03. What are the tipped employee requirements for overtime in Pennsylvania?

Tipped employees must earn at least $135 per month in tips and spend 80% of their working time on tip-producing duties to maintain their tipped status and overtime eligibility.

04. Can employers require mandatory overtime work in Pennsylvania hospitality?

Yes, employers can require hospitality employees to work overtime shifts, but they must pay proper overtime wages for those hours.

05. Are there upcoming changes to overtime salary thresholds in Pennsylvania?

The U.S. Department of Labor has proposed raising the overtime salary threshold to $55,068 annually, potentially expanding overtime protections to more hospitality workers if implemented.