A federal judge in Texas has issued a nationwide order preventing the U.S. Department of Labor from increasing the “white collar” exemption salary minimum to $913 per week December 1. This order remains in effect until the court case filed by multiple states and jurisdictions goes to trial.
In New Jersey, the Governor has eliminated the earlier action on Pennsylvania residents. You’ll remember that we previously reported on the cancellation of one portion of the reciprocal agreement between the states.
The Governor’s action resumes the current practice of allowing cross-state withholding. Pennsylvania residents working in New Jersey can continue to have Pennsylvania income tax withheld from their pay, while New Jersey residents working in Pennsylvania can continue to have New Jersey tax withheld from their Pennsylvania income.
The reason for the about face? New Jersey was able to negotiate a better pharmacy plan for their health care plans, thereby saving enough money to allow the reciprocity to continue.