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Gear up for minimum wage hike: Notify workers, check budget

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in Compensation and Benefits,Human Resources

Make sure you're ready for the state's minimum wage increase, which takes effect Jan. 1, 2007, and will affect about 430,000 Pennsylvania workers.

Change any mandatory workplace posters to reflect the new wage. Let affected employees know you'll be increasing their pay.

You may also want to look at your organization's compensation plan. Employees who already are paid at or near the new rate may be expecting an increase, too. To remain competitive, you may need to revise your labor budget.

The new law: If you employ 11 or more workers, the law requires you to pay a minimum wage of $6.25 per hour starting on Jan. 1. Then you must pay at least $7.15 per hour beginning July 1, 2007.

Smaller businesses (10 or fewer full-time employees) must pay at least $5.65 per hour starting on Jan. 1 and then $6.65 beginning July 1, 2007. They won't have to pay the full $7.15 an hour until July 1, 2008.

The law also allows a 60-day training wage, set at $5.15 an hour, for employees younger than age 20.

Tip: Direct your questions about the new law to the Pennsylvania Department of Labor and Industry, Bureau of Labor Law Compliance, at (800) 932-0665.  

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