PA Lawmakers Propose Minimum Wage Increase to $12 an Hour

A bill that would end sub-minimum wage for employees who receive tips and raise the overall minimum wage to $12 an hour was introduced this week in Harrisburg.

Two area state senators are making a push to increase the minimum wage, including for employees who receive tips.

State Senators Daylin Leach (D-Montgomery/Delaware) and Mike Stack (D-Philadelphia) this week introduced legislation that would end sub-minimum wages for tip earners and raise the overall minimum wage to $12 an hour.

Current Pennsylvania law permits employers to use tips against all but $2.83 of the current $7.25 minimum wage. The federal minimum wage for tipped workers is $2.13, and has not changed for more than 20 years.

“The tipped minimum wage hasn’t changed in 23 years and allows business owners to take advantage of low-wage, disproportionately female workers even demanding they do un-tipped work like dish washing and cleaning bathrooms for $2.83 an hour,” Leach said. “Pennsylvania’s economy will grow as over one million workers in Pennsylvania would see their wages rise if we pass this bill. Twenty years of research has shown that in states that have increased the minimum wage, small businesses had lower turnover and increased productivity.”

Stack said defenders of poverty wages have been putting an “impossible burden” on working families for too long.

“Adjusting the minimum wage to account for inflation prevents working families from being trapped in poverty and reduces dependence on public assistance,” Stack said. “Fair wages for a day’s work is fundamental to achieving the American dream and generating self-determination and independence.”

In addition to an increase, the bill would tie the minimum wage to annual inflation, a practice currently done in 11 states, according to information from Stack and Leach.

Mad as hell... April 08, 2014 at 12:50 PM
hahahaha...Daylin Leach...the poster boy for lies and innuendos. He's such a wanker and a liar. If he did succeed (which he won't) I would personally start a recall. He can't take credit for Upper Merion doing so well since the TAXES are so low there (and naturally that's where he lives since they are so low). There isn't a country on God's green earth that has ever taxed and spent it's way to lasting prosperity and there never will be. I really wish he would start mouthing off on gun control again or maybe actually promote a bill that would create jobs rather than destroy them.
Larry Duncan April 09, 2014 at 06:34 AM
Craig Peters - I agree that correlation does not prove causation. However correlation does indicate the possibility of causation. In the real world, decisions often have to be made with incomplete information. If we can not eliminate higher minimum wages as a cause of higher unemployment then this correlation indicates that there is a POSSIBILITY that raising the wage by 65% to $12/hour could eliminate 2 million plus jobs.
Debbi Brandriff Cook April 11, 2014 at 06:39 PM
Say hello to the $9.00 mc donalds burger.
Bruce Patin April 11, 2014 at 07:37 PM
Some prices would rise a bit, but not enough to ruin business. It is a tradeoff. The business owners would take a hit. Some small business owners would feel it badly. Most large businesses, due to the already inflated salaries of their executives, would absorb it with no problem, but some of the executives would have to take a cut, and that would upset them enough to look around for another position. McDonalds would fit the latter category. They couldn't sell hamburgers at $9.00, so the price would not go up that much, and they would take the money from higher up, which they ought to do, anyway, since they have a reputation of stealing money from their employees at the bottom, and there is a lot of correction due. How much would you pay to continue to clog your arteries and bring on an early death, anyway?
Larry Duncan April 11, 2014 at 08:34 PM
While I agree with you there is no reasonable explanation for paying someone $8.75 Million per year, elimination of this cost and giving it to the 400,000 McDonald’s employees would result in a $0.01/hour raise. Even the distribution the entire $1.39 billion in profits would only permit a $1.74/hour raise. Of course some of car companies tried to operate without any profits in the past and that didn't work out so well. Assets of $35.4 billion and a profit of $1.39 billion provide a return on investment (ROI) of 3.9%. I do not consider this to be outrageous. At Bayer we would not go ahead with a project that had an estimated, before tax, ROI of less 19%. So I must respectfully disagree with you, the problem IS a lack of money to pay a “living wage”, What is your definition of a living wage? With only one wage earner at a minimum wage of $7.25/hour and the Earned Income Tax Credit The income of a single adult is 126% of the Federal Poverty Level The income of a single adult with one child is 114% of the Federal Poverty Level. The income of a single adult with two children is 101% of the Federal Poverty Level.


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