Providing for employment in executive capacity, for employment in administrative capacity and for employment in professional capacity.
Summary
HB1023 would amend Pennsylvania’s Minimum Wage Act to define and update the criteria for three categories of exempt employees: executive, administrative, and professional. The bill sets out detailed duties tests for each category and establishes salary thresholds that must be met for an employee to remain exempt from overtime and minimum wage protections under those classifications.
The measure phases in higher weekly salary minimums beginning October 3, 2027, with additional increases in 2028 and 2029, and then ties future updates starting in 2030 to the weighted average 10th percentile wages for Pennsylvania workers in exempt executive, administrative, or professional classifications. It also allows up to 10% of the salary requirement to be met through nondiscretionary bonuses, incentives, and commissions, subject to annual reconciliation rules. The bill would override inconsistent regulations and take effect 60 days after enactment.
Impact
The bill would directly amend the Minimum Wage Act of 1968 by adding new statutory sections governing exempt employment classifications, thereby changing how Pennsylvania employers determine whether certain employees are exempt from overtime and related wage protections. It would affect employers across the state, especially those using the executive, administrative, and professional exemptions, and would likely require payroll, classification, and compliance adjustments. The Department of Labor and Industry would gain responsibility for calculating and publishing future salary thresholds using wage survey data and consulting with the Minimum Wage Advisory Board.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be a policy-driven update intended to modernize exemption standards and raise salary thresholds over time. The sponsor list suggests support from a group of legislators aligned with labor and wage policy changes. Because no voting history or transcript is provided, there is no documented public sentiment in the record here, but the structure of the bill indicates a reform-oriented approach aimed at expanding overtime eligibility for some workers.
Contention
The main points of contention are likely to be the higher salary thresholds, the automatic future indexing mechanism, and the broader effect on employer exemption practices. Employers and business groups may object to increased labor costs and compliance burdens, while labor advocates are likely to support stronger wage protections and narrower exemption standards. Another possible issue is the Department of Labor and Industry’s role in setting future rates based on wage surveys, which could raise concerns about administrative discretion and predictability for employers.
Providing for assumption of employment relationship, for terms of yearly employment contract, for prohibition on waivers or limitations of employment protections, for elements of wrongful discharge, for remedies for wrongful discharge and for probationary period of employment.