Minimum wage increase in Michigan

Governor Rick Snyder has signed into law legislation that will increase Michigan’s minimum wage to $9.25 per hour by 2018. Under the compromise bill, which received bipartisan support in both chambers of the state Legislature yesterday (Tue), the minimum wage will gradually increase from $7.40 to $9.25 per hour by 2018. Meanwhile, the rate for tipped employees will be 38 percent of the regular minimum wage. The wages will rise based on a five-year rolling average of inflation, but no more than 3.5 percent. The governor says (quote) “This is something thats good for Michigan, its good for the hardworking people of Michigan, and I believe economically sound in terms of hopefully creating an environment for long-term economic success.” The legislation differs from the bill that passed a House committee earlier Tuesday that would have raised the wage to $8.50 without inflationary increases. The action came a day before the Raise Michigan Coalition is expected to submit signatures for a voter-initiated act that would gradually raise the minimum wage to $10.10 per hour. It’s now unclear where the ballot proposal stands as it attempts to amend a minimum wage law that no longer exists, due to the governor’s signing of the new law.  (MRN)