State Legislators Push Minimum Wage Increase in Pennsylvania

Date: March 17, 2014 Last Edit: September 07, 2016

Move could cost the state tens of thousands of jobs

Like several of its neighboring states,
Pennsylvania’s politicians are considering an increase in the state’s minimum
wage. Currently, there are two plans being pushed, both by Democrats in the
state House. State Rep. Mark Cohen of Philadelphia has proposed raising the
minimum wage to $9 an hour, then increasing it every year to match the rise in
the consumer price index for urban consumers for the Pennsylvania, New Jersey,
Delaware and Maryland region, starting January 1, 2015. State Rep. Patty Kim,
from the Harrisburg area, would raise the minimum wage to $9 an hour, followed
by an increase to $10.10 a year later.

Gov. Tom
Corbett, a Republican, has warned against the impact of raising the state’s
minimum wage, acting as a backstop against any action on the issue by the
legislature. However, he is up for reelection this year and facing a tough
fight. There are a number of Democrats vying to unseat him, and polling shows
that he would be the underdog in the contest.

What This Means For Small Business in Pennsylvania:

NFIB recently published a research report
examining the impact of increasing the state’s minimum wage
. It forecast that a
wage of $8.75 or $9, adjusted annually for cost of living increases, would cost
the state as many as 28,000 to 119,000 jobs over a ten-year period. In the report,
Ken Shivers, executive state director of NFIB Pa., says, “The NFIB study shows
that more than half of the jobs would disappear from the small-business sector
in Pennsylvania. While minimum wage hikes are intended to help those below the
poverty level, they will do just the opposite. Small-business owners will
ultimately hire a more skilled employee rather than pay someone with no skills
and no experience higher wages. Unlike corporations, small businesses operate
on a slim profit margin and tough decisions will have to be made.” In an op-ed
for the Harrisburg Patriot-News,
Shivers also argued the negative impact of raising the minimum wage, arguing
that it would kill jobs and potentially cause serious harm to those it aims to
help.

Further Reading:

The AP has a story on the debate over
raising the state’s wage, while the Carlisle Sentinel
reports on Rep. Cohen’s bill. Philly runs an op-ed from a pair of
economists arguing the downside to raising the wage in the state. In a separate
piece, Philly also examines the push-back from
the business community. KYW-TV and Philly report on rallies held to call for
an increase in the minimum wage.

Do you own a business in Philadelphia? Become an NFIB member today and join
350,000 other entrepreneurs who are saving time and money through their
membership
.

Learn more about NFIB in Pennsylvania.

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