Governor Proposes Plan To Raise Minimum Wage In PA

Gov. Tom Wolf has pushed forward a proposal to raise the minimum wage in Pennsylvania.

At a press conference on Wednesday, the Democratic governor laid out his plan to raise the minimum wage from $7.25 an hour to $12 an hour starting on July 1. Between 2020 to 2025, there would be a $.50 yearly increase to the minimum wage until reaching $15 an hour in 2025.

While those against the plan have said in the past the increase would hurt businesses, Wolf said the path to $15 per hour would help workers receive a fair pay rate and take some of the working poor off of public assistance.

“It also lets people work their way off of public assistance rather than having taxpayers subsidizing employers that are paying poverty wages. One fair wage saves tax dollars, grows the middle class and creates new customers for businesses, which benefits all of us,” Wolf said.

The federal minimum wage has been stuck at $7.25 an hour since 2009 and those for increasing the minimum wage have made their voices heard in many states.

Across the nation, 29 states have raised their minimum wage, including all those that surround Pennsylvania. New Jersey’s Democratic governor recently signed a bill that paves the way to a $15 an hour minimum wage.

Wolf said that over time he wants the minimum wage to cover all workers, including those like servers who work on tips. According to law, servers only have to be paid $2.83 an hour with tips.

Seattle implemented a minimum wage hike and studies have provided conflicting results. A University of Washington study found that the increase to the pay floor caused a 5 percent reduction in the total number of jobs. A separate University of California study found that the increase caused no change in employment.

“The intentions behind this proposal may be good but it is simply disconnected from reality for many Pennsylvania employers,” Pennsylvania Chamber of Business and Industry President and CEO Gene Barr said.

Barr raised that small businesses members have shown concern over minimum wage increases that will have “real-world consequences on both the employer and the people who work for them.”

“The fact is, while some will obviously benefit from a higher minimum wage; many will be harmed. It’s unfortunate to think that lawmakers would rather engage in the same old political battles, rather than work together to develop modern, smart policies that help struggling Pennsylvanians without hurting employers and risking job loss,” he said.

Wolf’s office said a $12 an hour wage would cause 17,000 adults leave Medicaid next year and another 51,000 the following year.

A portion of public program savings will be reinvested in other programs, Wolf said, calling his proposal a “jobs plan.”

In 2018, Wolf signed a plan to increase the minimum wage for employers under his jurisdiction to $12. The wage will increase to $15 an hour in 2025.

While Wolf has proposed raising the minimum wage over the years, his $15 an hour plan is unlikely to gain traction in the Republican-controlled legislature.