COSTA REMINDS OF MINIMUM WAGE INCREASE

            HARRISBURG, June 20, 2007 - - State Sen. Jay Costa, Jr. (D-Allegheny) today reminded workers and employers that on July 1, Pennsylvania's minimum wage will increase for thousands of workers.

 “This increase in wages will undoubtedly help hardworking families pay the bills over the hot summer months ahead,” Costa said. “It is also important for employers and workers to understand that the new federal law will not affect most Pennsylvania workers.”

            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 from $5.15 to $5.85 an hour on July 24.  Pennsylvania’s minimum wage will rise to $7.15 per hour on July 1. 

Costa, a co-sponsor of the Pennsylvania bill, said that Pennsylvania employers must pay the Pennsylvania rate, not the federal rate, unless the federal rate is higher. 

Pennsylvania law, however, 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.

            The minimum wage for businesses in Pennsylvania 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.

            For more information on state and federal minimum wage rates and future increases, visit www.senatorcosta.com.