Pa. House passes minimum wage bill; Shapiro urges passage in Senate

The Pennsylvania House of Representatives has passed a bill to increase the minimum wage.

House Bill 2189 would increase the minimum wage from its current $7.25 an hour to $15. Pennsylvania‘s minimum wage has remained at $7.25 for 17 years. This marks the third time the House has passed legislation to raise the minimum wage, but the legislation has stalled in the Senate each time.

Governor Josh Shapiro is urging the Senate to this time pass the minimum wage legislation that proponents believe will put more money into people’s pockets, save millions in reduced Medicaid spending, and help Pennsylvania compete and grow.

“For more than 15 years, Pennsylvania’s minimum wage has been stuck at $7.25 an hour, falling further behind the cost of living and leaving hundreds of thousands of families struggling to make ends meet,” Shapiro said in a statement. “You shouldn’t have to work two or three jobs just to put food on the table and a roof over your head.

“We need to raise the minimum wage so Pennsylvanians have a real shot at getting ahead. The House has answered the call and passed legislation to raise the minimum wage three separate times – now it’s time for the Senate to follow their lead and get this done,” said Shapiro.

More than half a million Pennsylvanians earn less than $15 an hour. According to a release, the purchasing power of Pennsylvania’s current minimum wage has declined by more than 30% in the last 17 years.

Supporters of H.B. 2189 believe raising the minimum wage will boost consumer spending, reduce turnover for employers, and improve workers’ health and economic stability, all while delivering significant savings for taxpayers and more revenue for Pennsylvania. Higher wages would generate new revenue each year, strengthening Pennsylvania’s fiscal position while helping working families get ahead.

Opponents of the bill state that it raises the base wage for tipped restaurant workers by more than 200% (up to $9 an hour) and allows counties to accelerate the $15 an hour wage hikes at a faster rate than the state.

A study by the Employment Policies Institute (EPI), a nonprofit research organization, states that implementing a $15 wage in Pennsylvania could cost close to 86,000 jobs

Rebekah Paxton, EPI’s research director, said the House vote “ignores the well-documented harmful consequences of wage hikes by economists. Not only would this proposal slash up to 86,000 jobs, it would also worsen inflation for Pennsylvania workers and residents.

“Economists have found 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,” said Paxton.