1/3/07 PA
Minimum Wage increases as of January 1. PANO reminds workers
and employers that Pennsylvania's minimum wage increased as of
Jan. 1, 2007. Pennsylvania's new minimum wage law, signed by
Gov. Rendell as Act 112 of 2006, will raise the lowest wage for
most workers in two steps, reaching $7.15 an hour by July 1.
This is the first minimum wage increase since 1997. Businesses
with the equivalent of more than 10 full-time employees (400
wage-hours per week) the minimum wage will rise to $6.25 on Jan.
1 and to $7.15 on July 1. Businesses with the equivalent of 10
or fewer full-time employees will pay a minimum wage of $5.65 an
hour on Jan. 1, $6.65 an hour on July 1, and $7.15 an hour on
July 1, 2008. Workers under 20 years of age may be paid a
"training wage" of $5.15 per hour for up to 60 days of initial
employment. The minimum wage for employees that receive tips
remains at $2.83, but the employer must to make up the
difference if the wages and tips do not equal the new minimum
wage. For more information about the new minimum wage
regulations, go to the Pennsylvania Department of Labor and
Industry webpage at
http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&Q=64690
or go to
http://www.pasenate.com/minimumwage-compliance.htm.
State Senate Postpones Vote on Minimum Wage Bill Until 2006.
Senate Majority Leader David Brightbill (R-Lebanon) stated that
that there would be no action on raising the state minimum wage
until after the first of the year. The Senate will be in session
for only six days in December. Pennsylvania Senate Bill 929 was
originally proposed on October 13. SB 929 would increase the
state minimum wage from its current $5.15/hour.
Pennsylvania's current minimum wage was last increased in
1997 and stands at $5.15 per hour. This minimum wage would
provide an individual income of only $10,712 per year, well
below the $12,830/year federal poverty level for a family of
two. Adjusted for inflation, today's $5.15 minimum wage has lost
about 30% of its value since 1997. The majority of minimum
wage-earners are the working poor. Furthermore, minimum wage
jobs generally do not offer healthcare coverage.
The new minimum wage would increase from $6.25 per hour in
the first year to $7.15 in the second year. Each succeeding
year's minimum wage would increase based upon a calculation that
includes the consumer price index.
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