Agreement Reached on Legislative Minimum Wage Increase

From MIRS, May 27, 2014 

The state’s minimum wage would move to $9.25 an hour by 2018 under an agreement struck earlier today by the legislative quadrant [House Speaker, House Minority Leader, Senate Majority Leader, Senate Minority Leader]. 

Under the plan, the Governor would have the opportunity to sign an increase from the current $7.40 an hour one day before a citizens’ group is slated to turn in petitions on an initiative to jack the rate to $10.10.

Under the revamped proposal, the new rate would include a wage for tipped employees that is 38 percent of the minimum wage, or around $3.51 an hour.

Also, the new rate would be adjusted to the rate of inflation or 3.5 percent, whichever is lower, according to the new deal.

The plan still needs to get the approval of the full House and Senate, which is a significant hurdle considering the Republican majority in the House has been reluctant to support this type of a significant change to the minimum wage.

The House is currently moving slowly through its calendar as the necessary number of 56 yes votes is collected.

The vehicle bill, SB 0934 moved out of the House Government Operations Committee today with a revised minimum wage rate of $8.50 an hour, but the rate was not acceptable to Democrats, who hold key votes in the Senate on a road funding increase proposal.

However, Raise Michigan is expected to turn into the Secretary of State at 11 a.m. Thursday the signatures needed to put a $10.10 an hour rate on the November ballot. This ballot proposal also includes a $10.10 rate for tipped worked, which the restaurant industry has argued would close eateries and cost significant jobs.

The bill, SB 0934, repeals the existing minimum wage and creates a new one, making the ballot proposal null and void if the Senate bill is signed by Gov. Rick Snyder, who has seemed open to the idea in the past.