Pennsylvania kept the federal $7.25 minimum wage but runs its own overtime law: 1.5 times pay after 40 hours a week, no daily overtime. Enter your rate and hours for a Pennsylvania paycheck estimate.
Rules verified November 2026 · Sources: U.S. Department of Labor
By Mudassir Khan
PA Minimum Wage Act rules, federal style math. Each workweek stands alone.
Pennsylvania gives you three years to pursue unpaid overtime, confirmed by an October 2026 court decision. Estimates only. Not tax, legal, or payroll advice. Confirm with your employer or a qualified professional.
The Pennsylvania Minimum Wage Act requires 1.5 times the regular rate for hours over 40 in a workweek for nonexempt workers. The math matches the FLSA, but Pennsylvania courts and agencies enforce it as state law.
A Commonwealth Court decision on October 21, 2026 confirmed that unpaid overtime claims under the Minimum Wage Act must be brought within three years of the date the wages were due. The Wage Payment and Collection Law adds a 25 percent penalty for late wages.
Pennsylvania courts banned the fluctuating workweek half time method. A salaried nonexempt worker must receive 1.5 times the regular rate for every overtime hour, not the half time premium some employers try to pay.
Gross = (40 × rate) + (hours over 40 × rate × 1.5)
| Rule | Pennsylvania |
|---|---|
| Overtime rule | PA Minimum Wage Act: 1.5 times pay after 40 hours in a workweek, no daily overtime |
| Minimum wage 2026 | $7.25, tracking the federal rate, unchanged since 2009 (tipped cash wage $2.83) |
| State income tax | Yes, flat 3.07 percent, plus local earned income taxes in many areas |
| Claim agency | PA Department of Labor and Industry, Bureau of Labor Law Compliance |
| Claim deadline | 3 years from the date the wages were due |
| Worker | Math | Gross |
|---|---|---|
| $18/hr, 50 hours | $720 + 10 × $27 | $990.00 |
| $7.25/hr (minimum wage), 46 hours | $290 + 6 × $10.88 | $355.25 |
| $30/hr salaried nonexempt, 45 hours | $1,200 + 5 × $45 (full 1.5, no half time shortcut) | $1,425.00 |
| $25/hr, 40 hours | 40 × $25, no overtime | $1,000.00 |
Example 3 shows the Pennsylvania difference: some employers try to pay salaried nonexempt workers a half time premium for overtime. Pennsylvania courts rejected that method, so the full 1.5 times rate applies.
The $7.25 floor is locked to federal law. Pennsylvania sets its minimum wage to track the federal minimum, so it has not moved since 2009 and cannot rise without Congress acting. Every neighboring state pays more, which makes overtime math here start from a lower base than almost anywhere else.
The three year window is freshly settled. Before October 2026, employers and workers argued over whether Minimum Wage Act claims got three or six years. The Commonwealth Court picked three, matching the Wage Payment and Collection Law. If you are owed overtime from 2023, the clock is ticking.
Local taxes stack on top. Pennsylvania's flat 3.07 percent state income tax is only part of the story: most workers also pay a local earned income tax to their city or school district, often around 1 percent. Your overtime take home reflects both layers.
Pennsylvania overtime math matches the federal baseline explained in the FLSA overtime rules guide. For a state with the same $7.25 floor but no state overtime law at all, see our Georgia overtime calculator.
Yes. The Pennsylvania Minimum Wage Act requires 1.5 times the regular rate for hours over 40 in a workweek, mirroring the federal FLSA, with no daily overtime rule.
$7.25 an hour, the same as the federal rate and unchanged since 2009. Pennsylvania sets its minimum wage to track the federal minimum, so it moves only if Congress acts. The tipped cash wage is $2.83 an hour.
With the Pennsylvania Department of Labor and Industry, Bureau of Labor Law Compliance, or in court. An October 2026 court decision confirmed you have three years from the date the wages were due to bring a claim under the Minimum Wage Act.
No. Pennsylvania has no daily overtime rule. Overtime is owed only for hours over 40 in a workweek at 1.5 times the regular rate.
Yes. Pennsylvania taxes wages, including overtime, at a flat 3.07 percent rate. Many cities and school districts add their own local earned income tax on top.
No. Pennsylvania courts banned the fluctuating workweek half time method, so salaried nonexempt workers must receive the full 1.5 times the regular rate for every overtime hour, not just half time.
Rates and rules checked against these sources in November 2026.
Want the same math without the Pennsylvania framing? Use the overtime pay calculator. Curious what the no tax on overtime deduction does to a Pennsylvania paycheck? Try the deduction calculator and remember the 3.07 percent state tax still applies.