Central Penn Business Journal: State employees will be affected by $10.15 minimum wage

By Jason Scott
Central Penn Business Journal, March 7, 2016

About 450 of the commonwealth's 79,000 employees make the minimum wage of $7.25 per hour. An executive order signed today by Gov. Tom Wolf will raise the pay for those workers at a cost of about $1.6 million. ... The governor said the move will boost morale, improve productivity and reduce training costs associated with turnover.

The executive order also covers employees of organizations that negotiate state contracts or that lease property to the commonwealth. Those employees that perform direct services to the commonwealth or spend at least 20 percent of their working time on ancillary services related to the contract or lease will be paid at least $10.15 per hour. That provision, which could cost the commonwealth about $3 million, will take effect when contracts or leases are solicited or modified on or after July 1.

Wolf continues to push for legislation to expand the minimum wage across the entire commonwealth. An estimated 1.2 million people would be impacted, according to the governor. ...

John Traynor, owner of the Harrisburg Midtown Arts Center, and Charlie Crystle, co-founder and CEO of The Lancaster Food Co., also were in attendance to support the governor's call for statewide action.

"The governor's action is a vital step forward," Traynor said. "Businesses throughout our state will see greater consumer demand as workers have more money to spend."

The Lancaster Food Co., a city-based organic food producer, started out with a mission to pay its employees a livable wage. Jobs start at $12.50 per hour and quickly move up to $14.

"Investing in staff reduces costly turnover and creates a more committed, productive, healthier workforce, which helps my business prosper," Crystle said.

Crystle employs 11 full-time and six part-time workers. He said he hasn't had anyone quit.

He encourages business owners to step back and look at the issue from a holistic view. What are they offering and how? Then it becomes a lot easier, he said. "If the model of the business is paying people poverty wages, then it's not easy to make the jump to paying a fair wage." ... "It's only one part of any business," he said. "The benefits would be great for the economy and lower the costs of our social services."