MINIMUM WAGE WILL RISE AGAIN JULY 1
New federal law will have little effect in PA         

          State Sen. Lisa Boscola today reminded workers and employers that the new federal minimum wage law will not affect the vast majority of workers in Pennsylvania because they are already protected by a more realistic state law.

“Pennsylvania’s wage increase, which takes effect in just a few weeks, will improve the quality of life for so many hard-working individuals and families,” said Boscola, who co-sponsored last year’s wage increase legislation. “It will not be affected by the new federal raise, which is much less substantial.”

The federal minimum wage increase, the first in 10 years, was achieved by attaching the measure to the recently passed Iraq war-funding bill. The bill boosts the federal minimum wage to $5.85 an hour on July 24.  Pennsylvania’s minimum wage will rise to $7.15 per hour on July 1.

“The new federal increase is simply not enough for workers who live on minimum wage,” said Boscola. “However, it will not affect Pennsylvania’s July 1 increase, which is a more realistic living wage.”

Pennsylvania employers must pay the Pennsylvania rate, not the federal rate, unless the federal rate is higher. 

Pennsylvania law allows employers to pay a “training wage” to workers under 20 years of age for up to 60 days.  For those workers, the federal minimum wage will be in effect during the training period. In 2009, if Pennsylvania law remains the same, the federal law will add 10 cents an hour to the minimum wage here.

While Pennsylvania’s July 1 increase will bring the minimum wage to $7.15 an hour, certain small businesses are allowed to raise the minimum wage at a slower rate. The minimum wage for businesses with the equivalent of 10 or fewer full-time employees rises to $6.65 on July 1, and to $7.15 on July 1, 2008.

            The following is a schedule for federal and state minimum wage levels:

            July 1 - $7.15 – Pa. businesses with more than 10 full-time employees

            July 1 - $6.65 – Pa. businesses with 10 or fewer full-time employees

            July 24 - $5.85 – federal minimum wage and PA “training wage”

            July 1, 2008 - $7.15 – All Pennsylvania employees

            July 24, 2008 - $6.55 – federal minimum wage and PA “training wage”

            July 24, 2009 - $7.25 – federal minimum wage and all PA wages