State Boosts Minimum Wage; Kills Ballot Proposal

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.