Pa. House passes increase in minimum wage to $15/hr

The State of Pennsylvania is moving towards a higher minimum wage.  

The House of Representatives has voted to raise the minimum wage in a proposal that would gradually increase the minimum wage from the current $7.25 an hour to $15 an hour by 2026. 

There would be interim steps with the rate first rising to $11 an hour on Jan. 1, 2024, and $13 an hour starting Jan. 1, 2025. 

There would be annual cost-of-living increases beginning in 2027. The bill would also set the minimum wage for tipped workers at 60% of the hourly minimum wage, which has been$2.83 per hour. 

The measure now heads to the state senate. 

A number of house representatives have made statements asking the state senate to support the plan. 

State Rep. Kyle Donahue, D-Lackawanna, spoke in support of House Bill 1500.  

“A study that was recently conducted by the Keystone Research Center says that Pennsylvanians who live near the borders of neighboring states are traveling to those states to find work that can pay them $100 more per week than an in-state job,” Donahue said. “Passing this bill shows that the House of Representatives hears our workers’ calls for action on raising the minimum wage. 

State Rep. Jeanne McNeil, D-Lehigh, also spoke in support of the plan. 

“We owe it to our workers who keep our businesses running and economy flowing to pay them wages that reflect the current prices of the 21st century, and I was glad to vote alongside my colleagues to get one step further toward that goal.” 

The plan has also received support from some business owners in the state, including John Schall, owner of El Jefe’s Taqueria in Bethlehem.   

“Raising Pennsylvania’s minimum wage is long overdue. It will put more money in people’s pockets and help businesses and our economy grow,” he said in a release. “Fair pay is critical to El Jefe’s success. We don’t have trouble hiring, our low employee turnover saves us time and money, and our teams work better together. Our customers appreciate the good food and service that our employees are able to provide whether it’s early morning or late at night.” 

Peter Barber, CEO of Two Dudes Painting Company in Lancaster, also commented in a release. 

“I’m thrilled to see that the Pennsylvania legislature is moving forward with an increase in the minimum wage,” he said. “These efforts will help ensure a vibrant workforce that is fairly compensated and is committed to producing the best goods and services available. An engaged workforce will continue to help Pennsylvanians and our communities to thrive.” 

Not everyone supports the plan, however. House Republican Leader Bryan Cutler, R-Lancaster, called the plan misguided and said that it is helping special interests instead of real people. 

“Democrats advanced an admittedly incomplete increase to the mandated wage that will hurt workers, small businesses and non-profits while pushing for a tax credit even those it is designed to help say “misses the mark” on solving labor shortages in teaching, nursing and policing,” he said.