UPDATE: On July 5, 2012, the Governor signed the 8/80 bill (HB 1820). While the legislature’s action was certainly welcome news for Pennsylvania employers who had been using the 8/80 method, the amendment is prospective only, so employers may continue to face litigation over this issue for prior use of the 8/80 method. Also, this incident stands as a stark reminder to all Pennsylvania employers that wage and hour compliance is not just a federal issue. Where Pennsylvania law differs from the FLSA (and there are many such differences, even now that the 8/80 issue has been reconciled), employers must be aware of their obligations under both federal and state law.

In what would bring an end to a recent rash of class actions aimed at healthcare employers, the Pennsylvania Legislature presented Governor Corbett with a bill on June 28 that would amend the Pennsylvania Minimum Wage Act (PMWA) to specifically allow healthcare employers to pay employees overtime on a 14-day workweek, as opposed to a 40-hour workweek. The amendment would bring the PMWA into compliance with a provision of the Fair Labor Standards Act (FLSA) that permits medical facilities to pay employees overtime for hours worked in excess of 8 hours per day or 80 hours in a 14-day period. To learn more about the legislation and its potential implications for employers, please continue reading at Littler's Healthcare Employment Counsel blog.