Biden’s $15 minimum wage order could impact Pa.

PHILADELPHIA (KYW Newsradio) — President Joe Biden signed an executive order Friday to promote a $15 minimum wage for federal workers, and earlier this week, Pennsylvania Senate Democrats held a public hearing on raising the minimum wage in the state.

The hearing was held on MLK Day to honor his legacy of fighting for workers’ rights and economic justice. Pennsylvania’s minimum wage, which is $7.25, has not been increased since 2007. Most Democratic state lawmakers are in favor of an increase while Republican lawmakers generally oppose it.

Dr. Hilary Wething, assistant professor of public policy at Pennsylvania State University, said with the current economic conditions, workers are feeling the pinch of the current pay rate.

“Given the pandemic, and given the economic downturn, I think there’s a real sense of urgency among workers and their families that $7.25 is not enough to make ends meet — at all,” Wething said.

Every state surrounding Pennsylvania has a higher minimum wage, with New York leading the way at $12.50 an hour. The lowest is $8.80 in Ohio. New Jersey’s minimum wage is $12, Maryland’s is $11.75, and Delaware is $9.25.

But the chances of raising the minimum wage in Pennsylvania are slim. Both the state House and Senate are controlled by Republicans.

Wething said the president’s order may help push things along.

“Federal legislation might move much faster at this point than Pennsylvania state legislation,” she noted.

The Economic Policy Institute said Pennsylvania’s minimum wage is set equal to the federal minimum wage by statute.

Wething said research shows higher wages stimulate the economy and minimally create job loss.

“At the state level, we have dozens of studies that have shown over and over again that the minimum wage generally leads to higher wages and leads to anywhere from no effects on unemployment to very small negative effects,” she explained.

And she added every dollar earned goes back into the economy.

“Workers will spend every single additional dollar they get on the necessities that they previously could not afford,” she said.

The EPI says 29 states in total have increased the minimum wage, some through legislation, others through ballot initiatives. Ballot initiatives are not part of the Pennsylvania legislative process.