Pennsylvania Raises Minimum Wage

The state of Pennsylvania has joined 19 other states and the District of Columbia in voting to raise the minimum wage. Governor Ed Rendell on Sunday signed the bill that will eventually take it to $7.15 on July 1, 2007. Businesses with 10 or fewer employees will follow a delayed implementation schedule, which will span over a two-year time period.

Critics say the increase to $7.15 an hour will lead to layoffs for unskilled workers.

"This new law is not going to create a single job in Pennsylvania," said Kevin Shivers, the Pennsylvania state director for the National Federation of Independent Business. "Small-business owners will be handing out pink slips come January. At the end of the day, the people that get hurt are those with low skills, low education levels, and teenagers who are new to the workforce -- the exact people lawmakers say this law will help."