The Fair Minimum Wage Act of 2007, signed into law by President Bush on May 25, 2007 increases the federal minimum wage for the first time in 10 years. In a three-step process, the Federal minimum wage will increase to $5.85 on July 24, 2007; $6.55 on July 24, 2008; and $7.25 on July 24, 2009. Employers must pay the higher of the Federal or Pennsylvania minimum wage. In all cases, the Pennsylvania minimum wage rate is equal to or higher than the Federal minimum wage rate:
| PA Minimum Wage |
PA Small Business |
Federal Minimum Wage | |
| July 1, 2007 | $7.15 /hour | $6.65/hour | $5.85/hour |
| July 24, 2008 |
$7.15/hour |
$6.55/hour | |
| July 24, 2009 | $7.25/hour | $7.25/hour | $7.25/hour |