labor lawAdivision of labor law center

On July 24, 2009 the Pennsylvania minimum wage increased by 10 cents, from $7.15 per hour to $7.25 per hour.

 

Many employers wonder why all the fuss about such a small amount of money. However, under state law the Pennsylvania minimum wage cannot be less than the federal minimum wage. When the federal rate increases by 70 cents from $6.55 to $7.25 per hour later this month, by statute, the Pennsylvania minimum wage must increase, as well.

 

The last increase to the Pennsylvania minimum wage was to $7.15 per hour on January 1, 2007.

 

Each time the federal or Pennsylvania minimum wage increases, employers must display updated labor law posters. 

 

Both the Pennsylvania minimum wage and the federal minimum wage increased in 2007 from $5.15 to $5.85 and again in 2008 from $5.85 to $6.55.

 

The Pennsylvania minimum wage for tipped employees remains at $2.83 per hour. However, if the employee does not average $4.42 per hour in tips over the payroll period, the employer must pay the difference.

 

The new federal minimum wage essentially eliminates the Pennsylvania training wage. Under state law, an employee under the age of 20 could be paid a lower “training wage” equal to the federal minimum wage during the first 60 days of employment. However, under the current law, the federal and state minimum wage are the same and employers must pay the minimum wage from the first day of employment.

 

Though this increase may create hardship for employers in this struggling economy, 2009 is the last scheduled increase for the federal minimum rate. At this time, no increase is scheduled for 2010.

 

Pennsylvania state minimum wage covers the smaller employers. The Pennsylvania minimum wage law is enforced by the Bureau of Labor Law Compliance, a part of the Pennsylvania Department  of Labor and Industry. 

 

The remaining companies are covered by the federal Fair Labor Standards Act (FLSA), which is enforced by the Wage and Hour Division of the U.S. Department of Labor at www.dol.gov.

 

FLSA covers several different types of employers, including government agencies (federal, state and local), hospitals, health care facilities and schools. The federal law also applies to companies that earn at least $500,000 per year and those that are engaged in interstate commerce.

 

Interstate commerce refers to any company that does business with other states. Any business that accepts credit cards is conducting business with other states, as are employers that conduct business via the Internet, communicate through emails and ship packages out-of-state. It would be difficult to find any modern business that did not engage in interstate commerce.

 

All of these companies would be covered under FLSA and be required to pay the federal minimum wage.

 

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