Small Businesses Are Sounding the Alarm in Harrisburg over House Bill to Drastically Hike the Pennsylvania Minimum Wage

May 18, 2023

Ill-informed proposal comes as nearly half of small businesses have job openings they can’t fill

Small Businesses Are Sounding the Alarm in Harrisburg over House Bill to Drastically Hike the Pennsylvania Minimum Wage

FOR IMMEDIATE RELEASE HARRISBURG, PA (May 18, 2023) – Pennsylvania’s leading small business advocacy association, the National Federation of Independent Business (NFIB), is sounding the alarm over a proposed new bill in the state House, HB 1135, that would hike the Commonwealth’s mandated minimum wage to $21/hour. The legislation is not yet scheduled for a hearing in the House but has overwhelming support within the one-seat Democrat majority. “This newly dropped bill, sponsored by Philadelphia Democrat Christopher Rabb, would raise the minimum wage in Pennsylvania to an astonishing $21/hour for minimum wage workers,” warned NFIB State Director Greg Moreland. “While the proposal is concerning on many levels, the most troubling aspect is the wide-ranging support from 35 other Democrat members of the PA House of Representatives. Members, such as Rep. Justin Flemming (D-Dauphin County), who don’t represent overly progressive districts, have signed on with their full support.” “Are these elected officials crazy, or are they just pandering to voters by submitting outrageous proposals? Nearly tripling the minimum wage to $21/hour would mean that the average full-time minimum wage worker would receive an annual salary of $43,680,” said Moreland. “Read that dollar figure again. $43,680 for the entry-level teenager just learning the soft skills of employment.” “The minimum wage was never meant to be a lifelong wage, and with the help of the pandemic wages have far surpassed $7.25,” continued Moreland. “According to Pennsylvania’s Independent Fiscal Office, ‘…the data suggest that the effective market minimum wage is roughly $10/hour.’ Now, 35 Democrats want to more than double the market minimum wage, and triple the statutory minimum wage, to $21/hour.” “Drastically raising labor costs will continue to drive inflationary pressures, leading to much higher consumer costs for goods and services,” concluded Moreland. “Can you imagine what your groceries, dining out, fuel, and other costs will skyrocket to? Whatever some lawmakers in Harrisburg may think, small business owners aren’t out at sea in their yachts drinking champagne. They can’t afford this proposal. The Commonwealth can’t afford this proposal.” This ill-informed bill comes as small business owners continue to struggle to find workers, with 45% (seasonally adjusted) of all owners reporting job openings they could not fill in the current period, according to NFIB’s monthly jobs report. The share of owners with unfilled job openings exceeds the 49-year historical average of 23%. Of those hiring or trying to hire, 92% of owners reported few or no qualified applications for the positions they were trying to fill.

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For 80 years, the National Federation of Independent Business (NFIB) has been the voice of small business, advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit www.NFIB.com

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