Tuesday, March 22, 2022

Keystone Research Center statement on the IRRC ruling about the pay of tipped workers.

An important statement from our partners at Keystone Research Center about one of CLIP's top priorities - minimum wage. In this case, KRC is commending the Independent Regulatory Review Commission (IRRC) for its action in support of improving the pay of tipped workers. 

For Immediate Release

March 21, 2022

Contact: Stephen Herzenberg, 717-805-2318

Statement of Keystone Research Center on New Pennsylvania Minimum Wage Regulation

Earlier this afternoon, Pennsylvania’s Independent Regulatory Review Committee (IRRC) voted 5-0 to approve a new Pennsylvania minimum wage regulation. The regulation now goes to the Office of Auditor General (OAG) for final approval, after which it becomes effective through publication in the Pennsylvania Bulletin. The final form regulation is available at this link and Keystone Research Center’s explainer on the regulation at this link. In response to the unanimous approval of the regulation, Stephen Herzenberg, economist and executive director of the Keystone Research Center, issued the following statement:

“Through this new regulation, Pennsylvania takes modest steps to improve the pay of tipped workers—many of whom are among our lowest-paid hourly workers—and to raise overtime pay for lower-paid salaried workers who receive overtime. No longer can managers and supervisors in Pennsylvania unfairly take a share of pooled tips, companies charge tipped workers for credit card fees, or businesses reduce workers’ paychecks by tip amounts if workers only occasionally receive tips. In addition, the protection of time-and-a-half overtime pay for lower-paid salaried employees is now embedded in Pennsylvania minimum wage regulations for the first time (not just backed by court decisions).

These are modest and overdue steps to shift the balance in Pennsylvania’s highly inequitable economy in favor of workers. Keystone Research Center applauds the Wolf administration and the IRRC for advancing these changes. Much more, however, remains to be done, starting with the phase-in of a Pennsylvania state minimum wage to $15 per hour.”