Tom Wolf, the Democratic Governor of Pennsylvania, has made his move to boost pay in his state by alternative means after he was stopped in his efforts by Republicans. His original scheme was to pass the law which ups the state's minimum wage. The governor will now make a significant number of employees fully eligible for pay accrued during overtime work. This new proposal can be easily implemented as this step needs only the approval of the board. The latter consists of five members. All of them will be Wolf appointees. Two of them, as per law, must be Republican. Even then, there will be a 3-2 majority in favor of Democrats.
This move comes after Wolf spending a useless three years requesting the GOP-controlled Legislature to push up the minimum wage in the state. The latter is set at $7.25 federal minimum wage per hour.
According to the administration officials, the approval process could take a year. The effect of the overtime pay will be a positive one. The middle class will prosper and the economy will enjoy a boost. Salaries will be much more fairer. Wolf articulated the benefits, saying that people working overtime will be paid fairly for the work done. More amounts of money will flow into hardworking Pennsylvanians. There will be an expansion of the middle class demographic in the state.
Business views and government calculations
Business owners predictably are not pleased by this state of affairs. They had earlier expressed their pleasure when the federal courts had earlier stopped similar moves initiated by Barack Obama, the former US President. As per worker advocacy groups, a few employees work in excess of 40 hours every week but make much less than the minimum wage. As per management consultants, states like New York and California with steeper minimum salaries need overtime pay for the salaried workers. This must be more than federal baseline.
According to Wolf, the regulation would inculcate the rise over three years and ultimately cover about 460,000 salaried workers. This regulation would make it possible for the salaried workers to earn about $48,000 every year in 2022. This comes to $920 every week.
For employees who work more than 40 hours every week, the remuneration would be time and a half increase. It would go up to $31,720 per year in 2020. This comes to $610 per week. In 2021, it would be almost $40,000 or about $766 every week.