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Gov. Snyder signs new minimum wage into law

On May 27, 2014, Governor Snyder signed into law a new minimum wage. This law replaces the current minimum wage law and is known as the Workforce Opportunity Wage Act. The current minimum wage in Michigan is $7.40 per hour. Tipped employees are allowed a minimum wage of $2.65.

The new minimum wage will increase to $9.25 and will be phased in as follows:

  • $8.15 on September 1, 2014 – $3.10 for tipped employees
  • $8.50 on January 1, 2016 – $3.23 for tipped employees
  • $8.90 on January 1, 2017 – $3.38 for tipped employees
  • $9.25 on January 1, 2018 – $3.52 for tipped employees

 In addition:

  • Increases in the minimum wage will be tied to the Midwest CPI using a 5 year average of rates, beginning in 2019
  • This law caps the increase at 3.5% and eliminates the increase in any year in which the Michigan Unemployment rate is more than 8.5%
  • Tipped minimum wage will be 38% of full minimum wage
  • An employer may pay a new employee who is less than 20 years of age a training wage of $4.25 for the first 90 days of that employee’s employment
  • An employer may pay an employee who is less than 18 years of age 85% of the general minimum hourly wage

This law passes as efforts are underway by the Raise Michigan Coalition to raise the minimum wage to $10.10 per hour. The coalition has secured over 300,000 signatures in an effort to have a proposal placed on the November election ballot that would raise the minimum wage to $ 10.10 per hour over the next three years. Beginning in 2018, the minimum wage would be indexed to inflation each year. This proposal would also increase the tipped minimum wage by 85 cents per year until it catches up with the full minimum wage.

The new Workforce Opportunity Wage Act repealed the existing minimum wage law that the Raise Michigan Coalition is trying to amend. Some say that this makes the drive by the coalition invalid but Raise Michigan is continuing their efforts. Raise Michigan Coalition submitted their signatures to the Secretary of State by the filing deadline and say their minimum wage amendment should be on the ballet. We now await determinations on the legitimacy of this initiative.

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