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.

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