New Minimum Wage Bill

A compromise proposal to raise the minimum wage in Michigan has been approved by the Michigan Senate. The upper chamber of the Michigan Legislature today approved a phased-in increase that would go to $8.15 in September, to $8.50 next January, to $8.85 in January of 2016, and then to $9.20 on January 1, 2017. Tipped workers, who now make $2.65 per hour, would eventually earn a phased-in minimum wage of $3.50 in January of 2017. The measure also allows increases after 2017 at the rate of inflation or four percent, whichever is less. Wage increases would not take effect if the unemployment rate is above ten percent, under the measure. The bill also repeals the existing minimum wage law, so if it gets final approval, a Democrat-supported ballot proposal to ask voters to increase the minimum to $10.10 per hour would be null and void.