OSP Clarifies New State Minimum Wage Rule

Q: What is the Commonwealth’s Enhanced Minimum Wage Provision and does it apply to Penn State?

A: In March 2016, Commonwealth Executive Order 2016-02 ‘Minimum Wage for Employees of the Commonwealth and of Organizations Receiving State Contracts’ (https://www.governor.pa.gov/newsroom/executive-order-2016-02-minimum-wage-for-employees-of-the-commonwealth-and-of-organizations-receiving-state-contracts/) was enacted.

This order will be followed by Penn State for all agreements with the Commonwealth regardless of whether Commonwealth or federal pass-through funding. It is also included in the new COP Master Agreement. Effective July 1, 2021, the minimum wage requirement for those working on Commonwealth agreements will be $13.50 and increase by fifty cents per hour each July 1 until July 1, 2024, at which time it will be $15/hour.

Further details on the Commonwealth’s Enhanced Minimum Wage Provision can be found here 

Please note that this guidance may be updated again in light of the Governor’s announcement earlier this week. The previous version had the increase to $15/hour planned for 7/1/24, so this bumped it up two years. Here is the link to the Governor’s website with more info https://www.governor.pa.gov/newsroom/gov-wolf-fulfills-commitment-to-raise-minimum-wage-for-commonwealth-workers/.