[authors: Alexandra Bak-Boychuk, David S. Fryman, John B. Langel]
A critical bill concerning the 8-80 method of calculating overtime passed the Pennsylvania House of Representatives last week and is now up for consideration before the state Senate.
The method provides for payment of overtime to applicable employees for all hours worked in excess of eight hours in each day, and all hours worked in excess of 80 hours in a 14-day period.
Many health care employers in Pennsylvania—including assisted living, skilled nursing, and other long-term care providers—have long calculated overtime wages in this manner.
Several recent class actions have challenged the method’s permissibility under the Pennsylvania Minimum Wage Act, and the General Assembly appears poised to address the issue. If adopted, the legislation would make clear that Pennsylvania’s Minimum Wage Act mirrors the federal Fair Labor Standards Act by allowing payment of overtime to certain employees under the 8-80 method.
We will continue to follow and provide updates on this important development. If you would like to discuss this issue further, please contact John B. Langel at 215.864.8227 or langel@ballardspahr.com, David S. Fryman at 215.864.8105 or fryman@ballardspahr.com, or Alexandra Bak-Boychuk at 215.864.8123 or bakboychuka@ballardspahr.com.
