Minimum Wage Briefing
History of the Minimum Wage in MI
Year Federal Michigan
1983 $3.35 $3.35
1996 $4.75 $4.75
1997 $5.15 $5.15
2006 $5.15 $6.95
2007 $5.85 $7.15
2008 $6.55 $7.40
2009 $7.25 $7.40
Raise MI Proposal
• The Raise MI Coalition was formed in February
• Goal: Increase MI’s minimum wage from $7.40 to:– $8.10 on Jan. 1, 2015– $9.10 on Jan. 1, 2016– $10.10 on Jan. 1, 2017
• Indexed to rate of inflation beginning Jan. 1, 2018
Raise MI Proposal, cont’d.
• Tip credit language is more complicated
• Would increase the tipped employee minimum wage from $2.65 by 85 cents/year until it has caught up with the minimum wage
(then eliminated)Schedule (+.85/year):• 2014: $2.65• 2015: $3.50• 2016: $4.35• 2017: $5.20• 2018: $6.05• 2019: $6.90• 2020: $7.75• 2021: $8.60• 2022: $9.45• 2023: $10.10• 2024: $11.15• 2025: $11.83 Eliminated
Confusion Regarding Tipped Employees• Tipped employees are guaranteed to make
the full minimum wage• Tipped employers must pay the tipped
employee minimum wage (currently $2.65) but if the employees minimum wage plus gratuities does not add up to the full minimum wage (currently $7.40) the employer must pay the difference.– BOTTOM LINE: All tipped employees are
guaranteed to make at least $7.40/hour under current law.
Timeline• Raise MI has until May 28, 2014 to collect
258,088 valid signatures.• If they are successful, Board of
Canvassers needs to certify the signatures.
• After being certified, proposal goes to the Michigan Legislature.– 40 days to approve or disapprove, cannot be
amended• If approve, becomes law• If disapprove, automatically goes to voters in Nov.
National Landscape
• Raise MI proposal is more extreme than “Obama plan”, which calls for a $10.10 minimum wage by 2017 (versus 2016)– Obama plan increases the tipped credit by 85
cents annually – but caps the tip credit at 70 percent of the regular minimum wage (vs. fully eliminating it)
• Surrounding states:– OH: $7.95/$3.98 – IL :
$8.25/$4.95– IN: $7.25/$2.13 – WI:
$7.25/$2.33
Public Opinion Shows Support• Raise Federal Minimum Wage to $10.10/hour
– 69% favor, 28% oppose– Bloomberg, March 7-9, 2014
• Increase MI Minimum Wage to $10/hour– 60% yes, 32% no– EPIC-MRA, Feb. 13, 2014
• Raise the MI Minimum Wage to $9.50/hour– 61% favor, 35% oppose– Public Opinion Strategies, Feb. 9-10
• Increase the MI Minimum Wage to $10.10/hour– 65% yes, 32% no– Free Press/Lambert Edwards & Assoc., March 9-10, 2014
Tough to BeatYear State % Yes
2013 New Jersey 61%
2006 Arizona 65.4%
2006 Colorado 53.3%
2006 Missouri 76%
2006 Montana 72.7%
2006 Ohio 56.2%
2004 Florida 71.3%
2004 Nevada 68.4%
2002 Oregon 51.7%
1996 Washington 66.1%
1996 Missouri FAILED
1996 Montana FAILED
1996 Oregon 56.8%
Questions?
Wendy BlockDirector, Health Policy & Human Resources
Michigan Chamber of Commerce517/371-7678 (office)
