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July 2006

News & Media

Pennsylvania, Massachusetts Legislatures Act on Minimum Wage Increases 
July 11, 2006 

PHILADELPHIA – Pennsylvania has a new law boosting the state minimum wage to $6.25 an hour, while Massachusetts legislators are backing an $8.00 an hour minimum wage increase.

On July 9, Gov. Edward Rendell (D) signed into law legislation to boost Pennsylvania’s minimum wage to $6.25 an hour on Jan. 1 and to $7.15 an hour on July 1, 2007, according to a press release. Employers with 10 or fewer full-time employees will follow a delayed implementation schedule that boosts the minimum wage to $5.65 on Jan. 1; $6.65 on July 1, 2007, and $7.15 on July 1, 2008.

“Too many Pennsylvanians have been working full-time and still living well below the poverty level at today's federal minimum wage,” said Gov. Rendell, adding, “This bill provides a fairer wage for more than 420,000 hardworking Pennsylvanians who deserve a raise.”
 
According to the release, the new law also provides for “a 60-day training wage, based on the federal $5.15-per-hour training wage, for employees under 20 years of age. Upon hiring, employers must notify workers of both the training wage and the workers' right to receive the Pennsylvania minimum wage after 60 calendar days of employment. The law also makes it clear that other workers may not be displaced to allow hiring of training-wage workers.”

Meanwhile, Massachusetts legislators have reached an agreement to boost the state’s minimum wage to $8.00 an hour over the next two years.

Congress Daily writes that the measure would increase the current $6.75 an hour minimum wage by 75 cents on Jan. 1, 2007, and by 50 cents in 2008. Earlier this year state senators passed legislation to boost the minimum wage to $8.25 an hour that would have tied future increases to the cost of living. The House passed a similar measure that would have increased the minimum wage to $8.00 an hour over a three-year period, but did not include the Senate’s tie to the cost of living.

A spokesperson for Gov. Mitt Romney (R) did not confirm whether the governor would support the measure.

Retailers Association of Massachusetts President Jon Hurst told Congress Daily the measure is an improvement, although the group opposes tying the minimum wage increase to the cost of living.

“Certainly the final bill turned out better than earlier versions,” Hurst said, adding, “It gives small businesses a little more lead time and preparation time.”