(The Center Square) – Pennsylvania lawmakers appear to agree the state’s $7.25 minimum wage is outdated, but the details on how far and how fast to raise it are up for debate as a House-passed bill heads to the Senate.
Democrats say it’s time to do the right thing while Republicans claim the bill fails to protect the wages of tipped workers, so they suggest finding middle ground.
Supporters cite the fact that Pennsylvania’s minimum wage has not increased since 2009 when it adopted the federal rate increase. They say it will put more money in people’s pockets and reduce the struggle to attract workers who are leaving for neighboring states with minimum hourly rates ranging from $15 to $17.
Critics warn that the increase could raise prices, reduce hours or jobs, and hit lower-wage parts of the state harder.
Gov. Josh Shapiro is urging the Senate to approve House Bill 2189, sponsored by Rep. Jason Dawkins, D-Philadelphia, which cleared the House last month on a 104-95 vote. It would raise the state’s minimum wage from $7.25 to $11 in 2027, $13 in 2028, and $15 in 2029, then index it to inflation. It would also allow counties to move faster, providing the amount does not exceed $15 – a move Dawkins described as an attempt to give Senate Republicans options.
Shapiro says more than half a million Pennsylvanians earn less than $15 an hour, and the purchasing power of the current minimum wage has eroded by more than 30% since 2009. Raising wages, he said, would help transition people from public assistance and save millions in Medicaid spending.
A study by the nonprofit Employment Policies Institute, or EPI, shows implementing a $15 minimum wage in Pennsylvania could cost the state nearly 86,000 jobs.
In an email statement to The Center Square, Rebekah Paxton, EPI’s research director, said the recent vote ignores the “well-documented harmful consequences” of wage hikes by economists – and the proposal would worsen inflation for Pennsylvania workers and residents.
“Economists have found,” Paxton said, “the ‘Fight for $15’ backfired on workers – especially those just entering the workforce. Pennsylvania will not be immune to these consequences playing out across the country.”
They argue the proposed increase could put one in four tipped restaurant workers out of a job and say decades of economic studies indicate that each $1 wage hike could trigger price increases up to 5.5%.
Estimates by Pennsylvania’s Independent Fiscal Office say that increasing the state minimum wage to $11 per hour would likely not have impact on overall employment levels or wage rates for cashiers, retail salespersons, or fast food and counter workers, because their data shows the effective market wage paid is already at that level.
“It’s been my mission to provide a living wage for all working Pennsylvanians, and this bill passing the House is a huge step forward in that mission,” Dawkins said. “If you work hard, you shouldn’t have to worry about your next meal or having a roof over your head. Pennsylvania needs a minimum wage suitable for everyone, not just to survive, but to thrive in our state.”
