According to the U.S. Department of Labor the Minimum wage is "workers who are covered by the FLSA are entitled to a minimum wage of not less than $5.15 an hour".The State of Pennsylvania however provides that the "minimum wage in Pennsylvania is $6.25 per hour effective January 1, 2007. The rate will increase to $7.15 per hour effective July 1, 2007. Employers with the equivalent of 10 or less full-time employees calculated on a 40-hour week can follow a different rate schedule."
Going from $5.15 to $7.15 would be a $2/hr raise or 38% more per hour. Would anyone consider adding 38% to the wages of an employee receiving say $33,000 a year? That would be a $12,540 paid raise.
Now if this is correct is leads to a number of questions:
- Are workers with less skills paid more in Pennsylvania than other States?
- Will unskilled workers flock to Pennsylvania for a 38% pay increase?
- Will companies move out of State to save labor costs? Much easier than moving offshore!
- Will unemployement rise in Pennsylvania and businesses discard lower paid workers instead of giving them mandatory raises?
