New Minimum Wage for Philadelphia City Workers and Contractors

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Minimum Wage IncreaseLate last year, Philadelphia Mayor Jim Kenney signed an ordinance that would raise the minimum wage for municipal government workers, contractors, and subcontractors to $15 an hour over the next four years. As stated by the Office of the Mayor, the purpose of the new law is to “assure that as many employees as possible within the City of Philadelphia earn an hourly wage that enables them to live with more dignity and increased economic self-sufficiency.”

Starting July 1, 2019, covered employees will see their paychecks go up. The schedule for the minimum wage rate is:

  • $13.25 per hour on July 1, 2019
  • $13.75 per hour on July 1, 2020
  • $14.25 per hour on July 1, 2021
  • $15.00 per hour on July 1, 2022

Then starting July 1, 2023, the minimum wage will continue to increase based on the Consumer Price Index for all Urban Consumers.

Employers covered by the law are:

  • City of Philadelphia government agencies, departments and offices;
  • for-profit Service Contractors, which receive or are subcontractors at any tier on contract(s) for $10,000 or more from the City in a twelve-month period, with annual gross receipts of more than $1,000,000;
  • non-profit Service Contractors which receive or are subcontractors at any tier on contract(s) from the City of more than $100,000 in a twelve-month period;
  • recipients of City leases, concessions, or franchises, or subcontractors or sub-recipients thereof at any tier;
  • city financial aid recipients; compliance shall be required for a period of five years following receipt of aid; and
  • public agencies which receive contract(s) for $10,000 or more from the City in a twelve-month period.

If an employer fails to comply with the law, the employer will be suspended from receiving financial assistance from the City or from bidding on an/or participating in future City contracts for up to three years. An employer is also prohibited from retaliating or discriminating against an employee who has claimed a violation of the law.

CPC encourages employers covered by the new law to start preparing for the new July 1st minimum wage. More information on the new law can be found at www.phila.gov.