As a result of a compromise reached during recent budget negotiations, Pennsylvania repealed an administrative rule that would have substantially increased the salary threshold needed to qualify as an exempt executive, administrative and professional (EAP) employee under the Pennsylvania Minimum Wage Act (PMWA). Notably, the compromise did not just eliminate the increase to the salary threshold—it repealed the entire regulatory framework for defining the EAP exemptions under the PMWA.
Background
In October 2020, the Pennsylvania Department of Labor and Industry (DLI) published its final rule to substantially increase the salary threshold for qualifying as an exempt EAP employee under the PMWA to:
