Minimum Wage Set to Increase on July 1

HARRISBURG – An estimated 400,000 workers in the commonwealth will see their hourly pay increase to $7.15 on July 1 when the state’s minimum wage rises for the second time this year, according to Gov. Edward G. Rendell.

The increase for small employers (those who employ 10 or fewer full-time workers) will rise to $6.65 per hour. The increases were approved by the General Assembly and signed by the Governor last July.

“Pennsylvania is home to the hardest working men and women in the country,” Rendell said. “So it is only right that we ensure that they are receiving an equitable minimum wage for the contributions they make to our economy.”

The 60-day youth training wage, which is currently based on the current federal minimum wage of $5.15, will increase to $5.85 per hour on July 24, 2007, for employees under 20 years of age.

When they’re hired, employers must notify workers of both the training wage and the workers’ right to receive the Pennsylvania minimum wage after 60 calendar days of employment. Under the law, other workers may not be displaced to allow hiring of training-wage workers.

Changes to the federal minimum wage do not impact Pennsylvania’s wages in 2007 and 2008, except for the youth training wage described above. However, Rendell also reminded employees and businesses of recent changes to the federal minimum wage that will affect Pennsylvania’s minimum wage in the future:

-The state minimum wage will increase to $7.25 per hour on July 24, 2009, to match the federal minimum wage.
-Employers with 10 or fewer full-time employees who were scheduled under Pennsylvania law to have their final minimum wage increase to $7.15 per hour on July 1, 2008, will now see an increased to $7.25 an hour on July 24, 2009.
-The 60-day youth training wage rate will increase to $6.55 per hour on July 24, 2008, and to $7.25 per hour on July 24, 2009.

Due to the state increase and the recent changes to the federal minimum wage law, updated information is readily available in a user-friendly format at www.state.pa.us, PA Keyword: minimum wage. A free, downloadable copy of the minimum wage poster that is required to be displayed by all employers in the state can also be found on the site, as well as a complaint form for workers who believe they may have been wrongly denied the higher wage.

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