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Navigating Pennsylvania’s new minimum wage law

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in Compensation and Benefits,Employee Benefits Program,Human Resources

For many Pennsylvania employers, the state’s new minimum wage law taking effect Jan. 1, 2007, is straightforward: It raises the minimum wage they must pay employees to $6.25 per hour from the current federally mandated rate of $5.15.

“Small employers” have to pay only $5.65 an hour to start. Small employer minimum wage rates are phased out until they pay the same as other employers effective July 1, 2008.

The law, however, has numerous loopholes that you need to know about.

The new wage

For most employers, the state minimum wage jumps from the Jan. 1, 2007, rate of $6.25 to $7.15 on July 1, 2007. Small employers must pay $5.65 per hour until July 1, 2007, when the rate jumps to $6.65 per hour, followed by another hike to $7.15 per hour on July 1, 2008.

Who's a small employer?

Those that employ the equivalent of 10 or fewer full-time employees can pay the lower minimum wage rates. Full-time equivalents are calc...(register to read more)

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