State Boosts Minimum Wage; Kills Ballot Proposal
Posted on June 4, 2014
by NMCA
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Here are some of the major highlights of the minimum wage increase approved by the House and Senate and signed into law by Gov. Rick Snyder:
- Michigan’s minimum wage will go to $9.25 by 2018 and future increases will be tied to the rate of inflation or 3.5%, whichever is less. The current minimum wage rate in Michigan is $7.40 an hour; the federal minimum wage level is $7.25 an hour.
- Tipped income earners’ minimum wage would be set at 38 percent of the regular minimum wage, which as of 2018 would be around $3.51 an hour.
- The timeline for future increases is as follows:
- Sept. 1, 2014 – $8.15
- Jan. 1, 2016 – $8.50
- Jan. 1, 2017 – $8.90
- Jan. 1, 2018 – $9.25
It’s also important to note that this new law will nullify the proposed minimum wage ballot proposal that would raise the minimum wage for both tipped and non-tipped workers up to $10.10 per hour. Even if the minimum wage proposal is put on the ballot, it will not have the force and effect of law.
Here’s how our Alliance legislators voted:
- House members
- Foster – no
- Franz – no
- Rendon – no
- Potvin – yes
- Pettalia – yes
- Schmidt – yes
- MacMaster – no
- Kivela – no
- Senate Members
- Walker – yes
- Booher – yes
- Moolenaar – no
- Casperson – yes
We appreciate all the input received from our Chamber Alliance members on this key issue.
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