GLASS Report: Legislative Action Alert: Regular Session 2015-2016: House Bill 436

Short Title: An Act amending the act of January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act of 1968, further providing for definitions and for minimum wages; providing for reporting by the department; and repealing preemption provision.

Prime Sponsor: Representative COHEN

Last Action: Referred to LABOR AND INDUSTRY, Feb. 10, 2015 [House]

Memo: Minimum Wage (Revised)

Printer's No.: 474*

MEMORANDUM

Posted:            February 2, 2015 11:24 AM

From:   Representative Mark Cohen

To:       All House members

Subject:           Minimum Wage (Revised)

I plan to reintroduce a minimum wage bill that combines three important bills that were previously introduced in the 2013-2014 legislative session:  HB 1942, HB 2034, and HB 1941.  My minimum wage bill would provide for an increase in the minimum wage in Pennsylvania, an increase in wages for tipped workers, and would allow local governments to establish their own minimum wage standard.

(HB 1942 of 2014): My bill would increase the minimum wage to $9.00 per hour 60 days after enactment of the legislation, $10.10 per hour one year and 60 days after enactment, and $11.50 per hour two years and 60 days after enactment.  The initiative also provides for the implementation of a cost-of-living increase on January 1st of each year.

(HB 2034 of 2014): The proposal also provides for an increase in wages for tipped workers from its current level of $2.13 per hour to 70% of the minimum wage.  More and more tipped employees are slipping into poverty.  Tipped wages have remained at $2.13 per hour for the last 18 years.  In 1996, Congress revoked the percentage system used to determine the wages of tipped employees (formerly at 50% of minimum wage) and locked in the $2.13 dollar amount instead.  As a result, the value of wages for tipped workers is less than half of what it would have been had Congress not revoked the percentage system.  Tipped employees now earn only 29.4% of minimum wage, which disproportionately impacts women and minorities.  Please consider the following statistics contained in a 2009 analysis by the National Employment Law Project of tipped workers:

    62% are women;

    39.3% are minorities;

    33% are between 16 and 20 years old;

    18.8% are between 21 and 24 years old;

    33.9% are between 25 and 44 years old; and

    14.5% are 45 years old and older.

(HB 1941 of 2014):  Finally, my bill provides for repeal of Section 14.1 (Preemption), which prohibits local governments from establishing their own minimum wage requirements.  A growing number of local governments throughout the United States are driving the minimum wage debate forward by issuing their own requirements.  I believe Pennsylvania cities, counties, boroughs and townships should have the same flexibility as do their counterparts in other states.

All of these changes will look more and more reasonable over time as the flood of actions by other jurisdictions around our country continues to spread.  I invite you to join me in supporting this initiative to increase wages for low-income workers by co-sponsoring this legislation.

If you have any questions, you may contact Kathy Seidl of my office at 787-4117 or kseidl@pahouse.net.

Thank you.

Previous co-sponsors:

HB 1941 (local ban preemption):  BISHOP, BROWNLEE, CALTAGIRONE, MAHONEY, PAINTER, PARKER, READSHAW, ROEBUCK, SABATINA AND YOUNGBLOOD.

HB 1942 (minimum wage):  BROWNLEE, CALTAGIRONE, DeLUCA, MAHONEY, PARKER, READSHAW, SABATINA AND YOUNGBLOOD.

HB 2034 (tipped wages):  FRANKEL, BISHOP, B. BOYLE, BROWNLEE, CALTAGIRONE, D. COSTA, DeLUCA, KIRKLAND, MOLCHANY, MUNDY, PAINTER, PARKER, ROEBUCK AND YOUNGBLOOD.