Pennsylvania White-Collar Rules Complete Final Review

Final rules to update Pennsylvania’s white-collar salary threshold were sent to the Office of the General Counsel, a state official told Bloomberg Tax on Sept. 11.

The final rules were reviewed by the Office of the Attorney General and sent Aug. 7 to the Office of the General Counsel, the official said in an email to Bloomberg Tax.

The rules still must be published in the Pennsylvania Bulletin before they take effect, but the timing was not released. However, previous attempts by the legislature to scuttle the rules failed, so no further barriers appear to exist for enactment of the requirements.

The final regulations (Final-Form Regulation 12-106) indicate that one year after publication in the Pennsylvania Bulletin, the state’s white-collar minimum weekly salary threshold is to rise to $780 from the federal salary threshold of $684 that took effect in 2020. The state’s weekly salary threshold is to rise to $875 in 2022. The threshold is to be updated three years after publication and every three years later.

Legislature Shifts Approach

The House had until Sept. 2, based on state law and the legislature’s session calendar, to override a May 29 veto by Gov. Tom Wolf (D) of a resolution (H.C.R.R.R. 1) that opposed final regulations. No vote was held.

However, legislation is awaiting final consideration in the Senate that could require legislative approval before regulations determined to have an economic cost of more than $1 million could take effect (S.B. 5). Another measure would require that such regulations be reviewed and reported on three years after they are in effect, including consideration of whether the regulation should be repealed or amended (S.B. 609).

A regulatory compliance officer would be designated at each state agency to communicate with and educate the regulated community regarding compliance, under S.B. 253. The officer could issue advisory opinions, which could act as a defense in enforcement proceedings, and could establish guidelines to waive fines or penalties for self-reported violations.

Such legislation, were it to become law, could affect implementation of the final-form regulations, and the processes governing the approval of similar regulations in the future. The legislations’ effective dates range from immediately to 60 days after being enacted.

The state senate is scheduled to return to session Sept. 21.