A few weeks ago we brought you the news about the minimum wage going up in Michigan. Now we bring you the news about some pretty stiff pushback to that. Both sides appear to be trying to do the right thing for workers, but there are some pretty big differences of opinion on how that gets done. What’s really interesting is that the political lines aren’t as clear as they normally are.
Strange bedfellows, anyone?
Here are Five Fast Facts on the arguments over Michigan’s minimum wage increase:
- 👀 Let’s Review - A law was passed in 2018 requiring the minimum wage to go up to $15/hr by 2028. Then a bunch of legal bickering took place, ending with a decision to proceed starting next year. The idea is to walk the minimum wage up a bit more each year until it hits $15/hr…including the tipped minimum wage. Ah, such a sticky wicket, there.
- ⏩ Pushing Forward - Since it’s the most recent legal ruling, the state is moving forward with the change. The first increase will be next year. If the schedule continues, the tipped minimum wage will match the regular minimum wage in 2030, a year after the regular minimum wage hits $15/hr. Because you can’t just all arrive at the destination at the same time!
- ⏪ Pushing Back - Many restaurants and bars – both the owners and the workers – fear this policy will drive up costs and force job losses. A lot of tipped workers would prefer to keep getting those tips rather than the straight minimum wage, and they think tips will plummet if customers know they’re making a much higher hourly rate. That’s the kicker.
- 😯 Wake-Up Call - Hundreds of protesters showed up for a rally at the capitol last week, demanding for the changes to the tipped minimum wage to be killed. The irony is that though the Democrats drove the higher minimum wage for workers, Republicans are now championing the retention of tips for those same workers. Didn’t see that one coming, huh?
- 🤔 Politicians Politicking? - Governor Whitmer and leaders in the legislature aren’t saying anything. A cynical person might point out the fact that six unions have joined Republicans to take a stance against the changes for tipped workers could be putting them between a rock and a hard place.
🔥Bottom line: It’s an interesting situation, to be sure. This issue is definitely forming some strange alliances, and what you think almost certainly depends on how the issue affects you and your own Paychecks. We’ll keep an eye on it and update you as new events occur!
What do you think should happen to the tipped minimum wage?
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