34 Pa. Code § 231.82 - Executive

Employment in a bona fide executive capacity means work by an individual:

(1) Whose primary duty is the management of the enterprise in which he is employed or of a customarily recognized department or subdivision.

(i) For this section the term "management" is defined as follows: to include, but is not limited to, activities such as interviewing, selecting, and training of employees; setting and adjusting employees' rates of pay and hours of work; directing the work of employees; maintaining production or sales records for use in supervision or control; appraising employees' productivity and efficiency for the purpose of recommending promotions or other changes in status; handling employee complaints and grievances; disciplining employees; planning the work; determining the techniques to be used to perform work; apportioning the work among the employees; determining the type of materials, supplies, machinery, equipment or tools to be used or merchandise to be bought, stocked and sold; controlling the flow and distribution of materials or merchandise and supplies; providing for the safety and security of the employees or the property; planning and controlling the budget, and monitoring or implementing legal compliance measures.

(2) Who customarily and regularly directs the work of two or more other employees.

(3) Who has the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees are given particular weight.

(4) Who is compensated for services on a salary basis at a rate of not less than:

(i) $684 per week exclusive of board, lodging or other facilities, effective October 3, 2020.

(ii) $780 per week exclusive of board, lodging or other facilities, effective October 3, 2021.

(iii) $875 per week exclusive of board, lodging or other facilities, effective October 3, 2022.

(iv) Effective October 3, 2023, and each 3rd year thereafter, and at a rate equal to the weighted average 10th percentile wages for Pennsylvania workers who work in exempt executive, administrative or professional classifications as determined by the Department with advice and consultation by the Minimum Wage Advisory Board and based on an annual wage survey of all worker classifications conducted by the Department.

(A) At least 90 days prior to the effective date of each 3-year period in subparagraph (iv), the Department will submit to the Minimum Wage Advisory Board, the adjusted weekly salary rate under subparagraph (iv) and the information supporting the adjusted salary rate.

(B) Upon review of the information submitted by the Department and at a meeting to be held no later than 60 days before the effective date of the adjusted weekly salary rate, the Minimum Wage Advisory Board may provide advice and consultation to the Secretary regarding the adjusted weekly salary rate.

(C) At least 30 days prior to the effective date of each 3-year period in subparagraph (iv), the Department will publish the adjusted weekly salary rate on its web site and in the Pennsylvania Bulletin.

(5) Up to 10% of the salary amount required under paragraph (4) may be satisfied by the payment of nondiscretionary bonuses, incentives and commissions that are paid annually or more frequently. The employer may use any 52-week period as the year, such as a calendar year, fiscal year or anniversary of hire year. If the employer does not identify some other year period in advance, the calendar year will apply. If by the last pay period of the year the sum of the employee's weekly salary plus nondiscretionary bonus, incentive and commission payments received does not equal 52 times the weekly salary amount required under this section, the employer may make 1 final payment sufficient to achieve the required level no later than the next pay period after the end of the year. A final payment made after the end of the year may count only toward the prior year's salary amount and not toward the salary amount in the year it was paid.

Notes

34 Pa. Code § 231.82

The provisions of this § 231.82 amended October 2, 2020, effective 10/3/2020, 50 Pa.B. 5459.

The provisions of this § 231.82 amended under sections 5(a)(5) and 9 of The Minimum Wage Act of 1968 (43 P.S. §§ 333.105(a)(5) and 333.109).

This section cited in 34 Pa. Code § 231.81 (relating to definitions).