Minimum wage tier could hurt small counties
Pennsylvania would raise its minimum wage to $15 an hour in 20 of its counties, and to $12 in the rest under a bill the Democratic-controlled state House passed last week.
It’s a new approach for the chamber that is designed to win critical Republican support, and it comes after years of unsuccessful attempts to raise the minimum wage to $15 an hour across the entire state.
Pennsylvania’s minimum wage has been $7.25 an hour since the federal minimum went up in 2009, and has stayed stagnant even as every neighboring state has set a higher floor.
Under the House bill, Pennsylvania’s biggest county, Philadelphia, would see its minimum wage immediately jump to $15 an hour on Jan. 1, 2026.
In the next 16 most populous counties, including Allegheny, Erie and Lancaster, the minimum wage would move to $12 an hour at the start of 2026, increase to $13 an hour the following year, then jump to $15 an hour in 2028.
Three smaller counties, Centre, Monroe and Pike, would also be included in this tier — all three have at least one Democratic representative, and a spokesperson for House Democrats said they had been included in the tier “at the request of our members.”
For the other 47 counties, the minimum wage would increase to $10 an hour in 2026, then grow by $1 each year until hitting $12 an hour in 2028.
All counties would also receive an annual cost-of-living adjustment starting in 2029. That COLA would be based on consumer price data from Pennsylvania and neighboring states, as collected by the U.S. Department of Labor and the Bureau of Labor Statistics.
The minimum wage for tipped workers, such as those in restaurants, would also increase under the measure. These workers are currently paid $2.83 an hour, and the bill would require employers to pay them 60% of their county’s minimum wage.
State Rep. Jason Dawkins, D- Philadelphia, the prime sponsor of the House bill, told Spotlight PA he hopes state Senate Republicans see the legislation as a sign of good-faith negotiation.
The proposal passed the state House 102-101, along party lines. It now goes to the Labor and Industry Committee in the GOP-controlled Senate for consideration.
Locally, Rep. Doyle Heffley said the bill was not well thought out and could hurt Carbon County.
First, the tier approach as a problem.
“It will hurt rural counties like Carbon,” he said in a video statement. “We are already competing with Northampton and Lehigh counties.”
Carbon can’t offer high salaries that bigger counties can and Heffley cited the turnover of courthouse workers because of pay issues.
School districts and police departments have also lost employees to the Lehigh Valley.
He said though that just 0.8% of Pennsylvania jobs pay only minimum wage. Those are usually paid to first-time workers such as teenagers. If companies are pressed to give them more money they will likely look for more experienced candidates, Heffley said.
Senior citizens have also taken lower paying jobs to make some extra money. “This would block out senior citizens,” he said.
The proposal would also cost school districts more money and increase school taxes.”
Heffley maintains that the state should be looking at other issues such as attracting more business to the state, attracting and paying home health care workers and taking care of special needs.
Democratic Gov. Josh Shapiro has also called on the Legislature to raise the minimum wage to $15 an hour during each of his annual budget proposals since taking office.
Senate Majority Leader Joe Pittman, R-Indiana, has said he isn’t opposed to a minimum wage increase in principle, but in 2023 as House lawmakers considered Dawkins’ last bill, he said that $15 an hour is “not a practical number.” It could, he said at the time, negatively impact nonprofit organizations that provide essential services, such as in-home medical care.
Pittman said it is possible the Legislature could find “a middle ground for an increase to the minimum wage,” but that any change would need to be a “commonsense adjustment” that is sensitive to the impact on small businesses and nonprofits.
Rep. Chris Rabb, D-Philadelphia, said he supports the measure but wishes it raised wages higher and didn’t allow separate minimum wages to be set for tipped workers, and for workers who are incarcerated or have disabilities. He called it the “lowest common denominator,” but added, “at least it moves us in the right direction.”
KATE HUANGPU | Spotlight PA
Marta Gouger contributed to this report.
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