The Truth About Michigan’s New Minimum Wage Law

Thursday , 29, May 2014 4 Comments

On Tuesday, May 28, Governor Snyder signed a new law that gradually raises the minimum wage to $9.25 per hour by 2018. Republicans concerned that a successful petition circulated by Raise Michigan would succeed as a ballot proposal in November, so quickly rammed their bill through the state legislature at lame duck 2012 speed to stop the will of the people on more than one front. The ballot initiative would gradually raise the minimum wage to $10.10 per hour by 2017, tie future minimum wage increases to inflation, and finally bring up tipped employee wages to 100% of minimum wage.

State Senate Majority Leader Randy Richardville admitted he introduced the bill to kill the people’s petition initiative. Michigan’s current legislature doesn’t care much for what the citizens of the state want or even need, like a living wage. Michigan workers will have to endure the lowest, slowest gradual wage hike in the country. By 2019, $9.25 will only have the same buying power as $8.50 has today. Michigan minimum wage earners will still be living below poverty.

By law, the Secretary of State must review the signatures collected and declare the petition valid for the November 4 ballot. Richardville’s attempt to thwart the Michigan Constitution and the will of the people may be unconstitutional. It is likely voters will still see the proposal this November and be able to vote, which is a problem for Michigan Republicans and why they quickly passed their minimum wage law. The opportunity to vote on raising Michigan’s minimum wage will bring out more people to the polls, and that is bad news for Republicans. The people who will vote in favor of the new law will also likely vote for Democratic candidates; two million more votes went to Democratic candidates in this state than did for Republicans in 2012. High voter turnout is the last thing Michigan Republicans want.

Democrats in the state legislature did win a small victory in modifying Richardville’s bill with the addition of tying future minimum wage raises to inflation. Unfortunately, tipped employees will still only make 38% of minimum wage, with a top increase of $3.52 per hour. The Michigan Restaurant Association was happy with the news that restaurant owners in Michigan won’t have to pay servers a living wage and will continue to rely on their customers to subsidize their employees’ pay.

Raise Michigan’s ballot proposal would lift nearly 100,000 Michigan workers out of poverty and provide a real boost to the state’s economy. Republicans claiming that higher wages hurt small business forget that most new job creation comes from small businesses, not the large corporations that received all the tax cuts in the state. Small business owners deserve and could really use some tax credits, but are always overlooked because they can’t afford to write the large campaign contribution checks.

Raise Michigan submitted the petition signatures on the same day Snyder signed Richardville’s bill into law. The chances Michigan voters will still have the opportunity vote for a real minimum wage hike on November 4th are good, provided our elected officials follow the law rather than stick to their own political agenda.

4 thoughts on “ : The Truth About Michigan’s New Minimum Wage Law”
  • […] they scrapped the law entirely and passed a new minimum wage law that raised the minimum wage, but to a lower amount than the ballot initiative would have. The new law raised the tipped minimum wage to a lower level than the ballot proposal would have, […]

  • […] Quick-forward to 2017, and the so-called minimal wage has been stagnant at $2.13 for nearly a quarter-century. Solely seven states out of our fifty present a minimal wage that’s equal for tipped employees and workers of different industries. It is very important notice, nonetheless, that lots of locations do pay their employees greater than the subminimum wage, together with Pink Lobster, the place employees receives a commission $4.20 an hour. In reality, some institutions declare they pay their employees greater than the federal minimal wage of $7.25 an hour. Image by http://www.upnorthprogressive.com/2014/05/29/the-truth-about-michigans-new-minimum-wage-law/ […]

  • Cora Goldbetter says:

    Snyder was trying to circumvent our initiative , and a better bill . If he is allowed to pull off this sham, we should protest with another quickly gathered petition to require a vote on a preference of the 2 different bills – if thats possible . The minimum wage petition was more than a deserved increase in wages for working people . It was also a vote against Republicans , and their economic abuse . I hope Snyder is not allowed to stop the initiative that was built against him . He is not on the side of Michigan residents ( except for his cronies and relatives . ) citizens need to know the content of the preceding article .

    • upnorthprogressive@gmail.com says:

      The only question is could another petition drive be completed by the deadline to make it on the November ballot? To start one now would be really cutting it close. Snyder said the minimum wage question was not of his concern and it still isn’t. He signed the law on Wednesday assuming he would kill the ballot initiative and save the Republicans their jobs.

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