Proposed Minimum Wage Hike May Be Double Edged Sword

A new bill in the Pennsylvania Senate aims to raise the state’s minimum wage to $20 per hour by July 1. It’s a pretty hefty boost too! The current minimum wage in Pennsylvania has been $7.25 since 2006. Senate Bill 1186 also seeks to set the tipped wage at 70% of the new minimum wage. That would mean tipped workers would be paid $14 an hour and it also means many of your favorite restaurants would either be immediately closed, or they would have to raise prices so high that many of their customers would not be able to afford to eat there anymore. Proponents say if passed, the legislation would potentially reduce reliance on public assistance. Those opposing it say it would transfer that assistance from the government to the backs of private business, forcing thousands of small businesses OUT of business.