Pennsylvania Moving Forward with New Overtime Rules
Harrisburg, PA – Following a public comment period and extensive stakeholder outreach, the Department of Labor & Industry (L&I) today submitted the final regulation that will modernize Pennsylvania’s overtime rules to the state’s Independent Regulatory Review Commission and legislative oversight committees.
The new regulation will expand eligibility for overtime to 143,000 people and strengthen overtime protections for 251,000 more. In total, 394,000 workers may benefit from the updated overtime rules.
Because the state’s overtime rules have not been updated in more than four decades, a salaried worker earning as little as $23,660 a year, which is below the poverty line for a family of four, can work over 40, 50, 60 or more hours a week and not be guaranteed overtime at time-and-a-half. This final regulation ensures that employees who work overtime are fairly and fully compensated for their labor in accordance with the original intent of the Pennsylvania Minimum Wage Act.
L&I’s final regulation modernizes overtime rules, clarifies requirements, and updates the salary threshold to reflect current wages paid to Pennsylvanians working in executive, administrative, and professional occupations. This new rule will raise the salary threshold to determine overtime eligibility for salaried executive, administrative, and professional workers from the federal overtime salary threshold of $455 per week, $23,660 annually, to $875 per week, $45,500 annually.
Additionally, this final overtime regulation ensures that the duties for executive, administrative and professional workers more closely align to the federal overtime regulation, making it easier for employers to know if a worker qualifies for overtime.
The United States Department of Labor (U.S. DOL) issued a final rulemaking in September raising the federal overtime salary threshold to $35,568, which, on January 1, 2020, will make 61,000 Pennsylvanians newly eligible for overtime. The Wolf Administration does not believe the new U.S. DOL rule truly reflects what Pennsylvanians are being paid. L&I set the minimum salary threshold at $45,500, to be phased in over two years beginning in 2021. By 2022, an additional 82,000 workers in Pennsylvania will be eligible for overtime.
This increase will be phased in over three steps: $684 per week, $35,568 annually (per federal rule), on January 1, 2020; $780 per week, $40,560 annually in 2021; and $875 per week, $45,500 annually in 2022, extending overtime eligibility to 143,000 workers in three years. Based on public feedback received by L&I, these revised thresholds are lower than the amounts in the department’s original proposed overtime regulation updates from June 2018. Starting in 2023, the salary threshold will adjust automatically every three years.
L&I held informational sessions around the state over the summer and will continue outreach to businesses and workers on the lawful application of overtime rules.
The final regulation must be approved by the Independent Regulatory Review Commission before it takes effect.
MEDIA CONTACT: Penny Ickes, L&I, 717-787-7530 or dlipress@pa.gov
PA Becoming a Default State for HUD Installation.
As follow-up to our August 26, 2019 email, the following is additional information on the decision of DCED to suspend PA’s Installation Training and Certification program. The program will be suspended effective October 1, 2019; however, the HUD program will not go fully into effect until October 1, 2020. The timeline for this transition is as follows:
August 26, 2019 – PA Installation Training was suspended. Future training for those needing initial or continuing education will be HUD approved training and only online is available until the November 7 & 8 program being offered by Mark Conte. Go to https://www.manufacturedhousinginstallation.com/installers, find HUD approved training programs, both online and in person.
September 30, 2019 – last day that PA Certifications will be issued. PA certifications issued by DCED in September 2019 will expire October 1, 2020. Note, if you want, they will renew any certifications that expire in October, November or December providing you get them in by September 30 and have the required training. This will give you more time to get your HUD training and HUD license in place.
October 1, 2020 – HUD certified training and licensing will be fully implemented in PA.
October 1, 2020 – PA Certificate of Compliance forms will no longer be accepted for issuance of Certificate of Occupancy for new manufactured homes, only HUD Form 309 will be acceptable.
What it Means to be a HUD Installation State
Installation Method
The same as PA, homes must be installed in accordance to the approved manufacturer’s installation designs.
Installer Licensing
All current installers will need to obtain a HUD installation license. The effective date to do this will vary by installer. Note, for those PA installers who also have a HUD license they will not have to worry about PA deadlines. PA Certifications expiring prior to October 1, 2019 should be renewed if applied for by end of day September 30, 2019. PA Certifications expiring on or after October 1, 2019 will need to obtain a HUD certification using the HUD’s application Form 307 – HUD Manufactured Home Installers License Application. When the application is submitted to HUD, the following will need to be submit as well:
- Proof of successfully passing an approved HUD Installation Training program (only available online between now and October 1, 2019) – first in person course will be Mark Conte’s on November 7 & 8 (Harrisburg) and November 14 & 15 (Clarion)
- Proof they meet the minimum experience requirement
- 1,800 hours of experience in installing mfg homes (statement from past or present employer or self-certify)
- 3,600 hours as a supervisor in the building construction industry (statement from past or present employer or self-certify)
- 1,800 hours as an active manufacture home installation inspector (statement from past or present employer or self-certify)
- Completion of a one-year college educational program in a construction related field, or (copy of transcript required)
- A combination of experience and education that equals 3,600 hours of the above (statement from past or present employer or self-certify and copy of transcript)
- Bond and Insurance
- Surety Bond only – sufficient to replace the homes, minimum coverage $100,000.
- Insurance Coverage only – $250,000 policy that will cover all warranty issues with no deductible for one year after any installations. Paid in full for a minimum of 1 year, etc.
- Combination of Bond and Insurance – minimum of $250,000 general liability policy with HUD listed as a certificate hold and a $10,000 bond.
- Irrevocable Letter of Credit – sufficient to replace the homes, minimum coverage $100,000.
- Combination of Irrevocable Letter of Credit and Insurance Policy – minimum of $250,000 general liability policy with HUD listed as a certificate hold and a $10,000 irrevocable letter of credit.
Note: the combination of bond and insurance is most widely used.
Additional Notes on this process:
- I am being told for those who work for retailers the bond and insurance can be in the retailer’s name – trying to get this confirmed.
- I am being told SEBA is not quick to process the licenses so the sooner installers can submit their applications the better – DO NOT WAIT TILL THE LAST MINUTE!
- Licensees receive a paper copy of the license and an email copy.
- If at any time SEBA receives word the bond or insurance policy expires, they suspend licenses until a valid copy is supplied to them.
Special Note: Because of the length of time it takes to get a HUD license through SEBA, and provided your training is current, DCED is willing to renew a PA Certification that expires in October, November or December IF you apply for the renewal before the end of day, September 30, 2019. Note the certification will expire October 1, 2020, but it will give you time to get the HUD licensing requirements in order.
Inspections
PA Certificate of Compliance form will be in effect for new home installations until September 30, 2020. This will be for installers operating under a PA Certification or a HUD license.HUD Form 309 – HUD Manufactured Home Installation Certification and Verification Report – will replace the PA Certificate of Compliance for new home installations effective October 1, 2020.
- Form 309 MUST be completed in its entirety and signed by a licensed installer AND the local code officer prior to issuing a certificate of occupancy.
- If the local code officer refuses to sign the Form 309 then a HUD approved inspector must complete and sign the form. (This will cause delays and additional costs – so know what your local code official will do)
- Copies must be provided to anyone who paid for the installation (customer), as well as the retailer, building code official/HUD inspector, and HUD (copy must be attached to retailers Form 305).
- A copy Form 309 must be maintained by the installer for at least 3 years from completion of the installation.
Additional Notes on Inspections:
- I am already getting calls from HUD inspectors operating in Maryland and New Jersey.
- Mike Moglia is saying he will continue to provide training to code officials, to encourage code officials to sign the forms; but if not signed that is okay. We are getting clarification on this since HUD clearly states that if the forms are not signed, they will be returned, HUD deficiency letters will be sent, and licenses can be suspended until the form is signed.
- If code officials refuse to sign the Form 309 this will cause delays and add additional costs since a HUD inspector will need to be called.
Retailers Responsibilities
The HUD Installation program tracks not only installation but the sale of homes as well. This is done using the Form 305.
- Submit Form 305 – HUD Manufactured Home Retailer Report-Home Tracking Information – within 30 days from the time a purchaser enters into a contract to purchase a manufactured home – this information will be verified using manufacturers production reports.
- Submit Form 306 – HUD Manufactured Home Retailer Report-Home Installation Information – within 30 days from the date of installation – this information will be verified using manufacturers production reports, retailer reports and installer reports. SEBA is saying must attach a copy of the Form 309 for all homes listed on the report.
- Retailer records must be maintained for at least 3 years from date of completion.
Relocated Manufactured Homes
According to DCED this program remains in place. Certified installers will need to be involved in the installation of the home and the person responsible for the installation must provide a copy of the PA Certificate of Compliance form signed by a certified installer to the code official before a certificate of occupancy can be issued on the home. We continue to work with DCED on how this program will work in concert to the suspended program for new homes.
Secretary Carson Tells U.S. Senate that HUD is Alleviating Impediments to Manufactured Housing
HUD Secretary Ben Carson today told the U.S. Senate Banking Committee that HUD is working to address state and local regulatory barriers to manufactured housing, elevate the Office of Manufactured Housing Programs within the Department’s hierarchy, and explore ways to improve FHA underwriting for manufactured housing.
Secretary Carson made these comments during a hearing about housing finance reform, where he testified alongside Treasury Secretary Steven Mnuchin and Federal Housing Finance Agency (FHFA) Director Mark Calabria. MHI has prioritized these HUD actions in its advocacy before the Administration and Congress; Secretary Carson’s testimony before the Senate directly reflects MHI’s recommendations and advocacy efforts.
Also during the hearing, Treasury Secretary Mnuchin reaffirmed the Administration’s support for Duty to Serve, a Congressional directive that Fannie Mae and Freddie Mac must affirmatively provide mortgage credit for manufactured housing. This support reflects MHI’s continued and effective advocacy before the Administration about the importance of a vibrant, healthy secondary market for manufactured housing. MHI has repeatedly insisted that federal support for a secondary market for manufactured housing is essential as it will provide much-needed liquidity to lenders and improve consumer access to financing for attainable manufactured homes.
In his written testimony, Secretary Carson identified three areas that MHI has prioritized in its advocacy before HUD and Congress. First, the Secretary announced that the Office of Manufactured Housing Programs will be elevated within the HUD hierarchy and led by a Deputy Assistant Secretary. Second, FHA will consider modifications to its single-family housing financing programs to better serve manufactured housing. Third, HUD will address current delays to HUD Code updates and other regulatory impediments by creating “a formal framework for identifying and evaluating new building, construction, and design developments and ensuring that HUD’s regulations do not unnecessarily impede their adoption.”
During today’s hearing, Secretary Carson also reiterated that state and local barriers have severely impeded access to manufactured housing and referred to manufactured housing as a “very excellent solution” in solving the affordable housing shortage in the country. Treasury Secretary Mnuchin and FHFA Director Calabria also reaffirmed their commitment to addressing state and local impediments to affordable housing numerous times throughout the hearing. For example, in response to a question from Senator Patrick Toomey (R-PA), who serves as the Chairman of the Subcommittee that oversees Fannie Mae and Freddie Mac, FHFA Director Calabria stated that the lack of affordable housing is a result of state and local jurisdictions implementing arbitrary and discriminatory zoning and development restrictions. Director Calabria agreed with Chairman Toomey that until these barriers are addressed, there will continue to be a shortage of affordable housing.
The Senate Banking Committee hearing was held in response to Treasury’s plan for the future of Fannie Mae and Freddie Mac and HUD’s plan for FHA’s role in housing finance – both in response to a March 27, 2019 Presidential directive. MHI will continue to build upon its strong advocacy with Congress and the Administration to successfully elevate manufactured housing in Washington.
MHI Recommendations Included in HUD’s Housing Finance Reform Proposal
Housing Alert September 5, 2019
Secretary Ben Carson has again made manufactured housing a priority in his efforts to ensure that HUD’s policies support homeownership. In the housing finance reform proposal HUD sent to the President, Secretary Carson included proposals, that have long been recommended by MHI, to “address barriers to the greater adoption of manufactured housing.” According to Secretary Carson, “These changes to our housing finance system will help more American families achieve their dream of owning a home.”
The proposals included in HUD’s plan directly reflect MHI’s recommendations and effective advocacy efforts. Through letters, conference calls, meetings, and advocacy with the White House, Congress, and Secretary Carson and his senior leadership team, MHI has waged an aggressive campaign to ensure that HUD policies are changed to support manufactured housing. The recommendations in HUD’s plan include: elevating the Office of Manufactured Housing Programs within HUD; updating the HUD Code in a timely, efficient manner; greater utilization and enforcement of HUD’s preemption authority; and prioritizing updates to the Federal Housing Administration (FHA) financing programs for manufactured housing. In making these recommendations, HUD’s submission to the President stated, “The failure to periodically update the Construction and Safety Standards, for example, has hindered the manufactured housing industry’s ability to economize and leverage current construction techniques and materials that require HUD approvals.”
HUD’s housing financing reform plan includes the following reforms, which are a direct response to MHI’s recommendations and continued advocacy:
- Pursuant to the Executive Order of June 25, 2019, the HUD-led White House Council on Eliminating Regulatory Barriers to Affordable Housing will identify and recommend actions and policies to mitigate regulations that unnecessarily increase the cost of creating and preserving housing that is affordable and work with state, local, and tribal partners to do the same.
- To encourage innovation in manufactured housing, HUD should create a formal framework for identifying and evaluating new building, construction, and design developments and ensuring that HUD’s regulations do not unnecessarily impede their adoption. This framework would help gather the evidence necessary to update HUD’s regulations on a regular cadence, thereby better keeping up with evolving technology.
- HUD should devote resources to ensure the HUD-Code is modernized to incorporate the standards recommended by the Manufactured Housing Consensus Committee, to minimize overly burdensome regulatory and compliance requirements, and to encourage innovation. Once revised, HUD should also move to a regular cadence of updating its code to ensure that it is keeping pace with evolving technologies and best practices.
- HUD should publish updated Title I standards that address regulatory burdens of participating in the program as part of its Single Family Housing Policy Handbook 4000.1 (SF Handbook), which is intended to serve as the consolidated, consistent, and comprehensive source of FHA Single Family Housing Policy.
- HUD should elevate the Office of Manufactured Housing Programs within HUD and appoint a Deputy Assistant Secretary to lead it.
The inclusion of these recommendations by HUD demonstrates that MHI is successfully elevating manufactured housing in Washington through its continued outreach with HUD leadership and Members of Congress. As the Administration works to improve its regulation of manufactured housing, MHI will continue to effectively advocate on behalf of our great industry.
HUD’s plan was submitted to the President in conjunction with the plan for the future of Fannie Mae and Freddie Mac that was submitted by U.S. Treasury Secretary Steven Mnuchin. On March 27, 2019,
