Pennsylvania

Philly Doesn't Have the Authority to Raise its Minimum Wage — Here's Why

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Telemundo 48

Philadelphia has the fourth-lowest real minimum wage in a major U.S. city. 

Under Pennsylvania’s Minimum Wage Act, the City of Philadelphia does not have the authority to create its own minimum wage that appropriately reflects the city’s cost of living.

Since 2009, the minimum wage in Pa. has been $7.25, which decreases to $6.69 when the rate is adjusted for Philly’s actual cost of living, according to a bill proposed by Councilmembers Jim Harrity and Mike Driscoll in January.

The Federal Fair Minimum Wage Act of 2007 raised the state’s minimum wage to $7.25 effective July 24, 2009. Pennsylvania has followed the federal minimum wage - which still stands at $7.25 - since then.

Other states and cities have managed to successfully raise their minimum wage above the federal rate.

California has succeeded in raising its minimum wage to $15.50 effective January 1, 2023. Los Angeles however has had its minimum wage at $16.04 since July 1, 2022.

California was able to raise its minimum wage due to a provision in its existing minimum wage law that stated when inflation exceeds 7% the minimum wage has to be increased.

“The Commonwealth's minimum wage does not change…except when Federal law requires a higher minimum wage,” the Pa. minimum wage law states.

Other cities have raised their wage above the rate set by their state, such as St. Paul, which has a minimum wage ranging between $10.75 and $15.19 depending on the size of the firm, while Minnesota’s minimum wage stands at $10.59.

Across the nation, 53 other cities, counties, and the states they are located have adapted this type of nuanced policy to better suited their communities.

Previous attempts to pass legislation to increase the minimum wage in Pa. have failed and neither the General Assembly nor prior Governors have been able to succeed in changing the minimum wage laws.

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