Low-wage workers in Pennsylvania are missing out on the pay hikes taking effect in 22 other states and 43 cities and counties this month, through increases in their minimum wages.

Stephen Herzenberg, economist and executive director of the Keystone Research Center, said Pennsylvania is surrounded by neighboring states all are ringing in the new year with higher minimum wages. Since 2009, Pennsylvania's minimum wage has been $7.25 per hour, which he said hurts workers, the economy and small businesses.

"A higher minimum wage would increase the pay of 1.4 million Pennsylvania workers and create more economy-boosting jobs, with wages high enough to increase worker buying power at local businesses," Herzenberg explained. "A higher minimum wage will also benefit Pennsylvania small businesses who can't find or keep workers now because they pay too little."

Herzenberg pointed out people working in low-wage industries are paid $1 to $1.50 less per hour in Pennsylvania than in neighboring states. But backers of the current minimum wage said increasing it would be difficult for small business owners, who might then have to cut jobs or raise prices.

It is up to the General Assembly to set the minimum wage, and Herzenberg noted the new year might bring a change. The state House passed House Bill 1500, legislation to raise the minimum wage to $15 an hour by 2026. The idea has bipartisan support, but the Senate has not yet acted on a similar bill, Senate Bill 743.

"This bill would increase the minimum wage to $11 an hour immediately, and to $15 an hour by 2026," Herzenberg noted. "Pennsylvanians need to contact their state senator and urge them to support raising Pennsylvania's minimum wage so that our lower-wage workers earn enough to support their family."

He added the purchasing power of a dollar also has declined since the last minimum-wage increase. Ultimately, low-wage workers in the state have seen their buying power decrease by 30% in the past 14 years.

A bipartisan nonprofit group in Michigan is opposing pending legislation which would reverse a Michigan Supreme Court ruling, stripping paid sick leave and minimum wage protections, slated to take effect this month.

In 2018, Michigan voters approved initiatives to raise the minimum wage and provide paid sick leave but the GOP-led Legislature amended them in the same session, which the court ruled was unconstitutional.

Michigan's minimum wage is currently slated to rise to $12.48 on Feb. 21 and reach $14.97 by 2028.

Monique Stanton, president and CEO of the Michigan League for Public Policy, stressed how the proposed laws would affect Michiganders, especially low-income residents.

"If you get sick, your child breaks their leg, and you need to take a day or two off from work, you're not able to do so," Stanton pointed out. "That means you're making a choice between taking care of your child or being able to pay your utility bills, or being able to make your rent."

The new proposed legislation sets the minimum wage at $12 an hour this year, with tipped wages at 38% of the regular wage. If it becomes law, some Michigan workers' yearly pay will be reduced by $1,000 to $2,400 in the coming years.

Stanton noted polling data revealed keeping the paid sick leave and minimum wage increase has support from both Republicans and Democrats. She added her group is engaging with Michigan residents, businesses and other organizations to raise awareness and gain support.

"This is an issue that really will help people make ends meet, especially as we're worried about the economy and the costs of prices going up," Stanton stressed. "Both the boost to the minimum wage as well that protection for earned sick time are really essential."

The new bills have passed in the House and are now headed to the Senate. If they become law, the change will take effect on Feb 21.

Pennsylvania lawmakers return to Harrisburg on Monday, facing renewed pressure to address long-standing issues, including improving the economy and education.

Advocates said it is a crucial opportunity to make meaningful progress on many policies.

Gillian Kratzer, deputy director of the advocacy group Better Pennsylvania, said one key priority Democrats are focused on is improving school funding.

"Making sure that we are equipping schools to do the best that they can for every child in every school district," Kratzer emphasized. "Obviously last year, we had the court case that laid out, finally, that Pennsylvania does not have fair funding for schools, which is part of our state constitution."

Kratzer noted her group anticipates Gov. Josh Shapiro's third budget address on Feb. 4. In the last budget, Shapiro made the largest investment in Commonwealth history for K-12 public education, at just over $1 billion.

Medical marijuana is legal in Pennsylvania but not for recreational use. In the face of a budget shortfall, Kratzer acknowledged it will take bipartisan support, especially from the Republican-controlled state Senate, to secure new revenue sources, which could include legalizing recreational marijuana use.

"Something that we will hopefully see get done this year is doing something on recreational marijuana," Kratzer observed. "As a state, we have to find new sources of revenue, because we are either going to have to dip into our rainy day fund or raise taxes."

She added the state minimum wage remains stagnant at $7.25 an hour. A bill to raise it will be reintroduced. And she stressed the need for lawmakers to consider paid family leave, as the U.S. falls behind globally on the family-friendly policy.

Kentucky's unemployment rate is higher than the national average and workers who are employed said they are unsatisfied with their pay, according to new data from the Kentucky Center for Statistics and the Pew Research Center.

Paychecks have not kept up with the cost of living and are too low for the quality or amount of work they do, the survey revealed.

Dustin Pugel, policy director at the Kentucky Center for Economic Policy, said the Commonwealth has relatively low wages compared to other states, with an average household income of about $60,000 a year.

"The bottom 10% of workers had been stagnant for years and years, particularly following the Great Recession," Pugel pointed out. "After the COVID downturn, low-income wages have actually outpaced inflation."

Child care continues to be a major financial burden for households. According to the latest federal data, families spend between 9% and 16% of their income on full-day care for just one child, with costs ranging from around $6,500 to more than $15,000 a year.

Workers are now much more likely than in 2022 to say it would be difficult for them to get the kind of job they would want if they were to look for a new one, especially low-income workers. And more than 60% said they are unlikely to look for a new job in the next six months.

Pugel noted the wage gap and lack of options are driving increased labor organizing in the Commonwealth.

"I think what we've seen is a lot of response to that frustration through increased unionization," Pugel observed. "Especially in low-wage service sectors like baristas and bookstores."

According to the Kentucky Center for Statistics, the state's seasonally adjusted unemployment rate was 5.2% as of December 2024, slightly higher than the national rate. However, Kentucky continues to add new jobs in nonfarm sectors and manufacturing. More than 2 million people contribute to the state's civilian workforce.


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