Keeping up with the ongoing saga of the increasing minimum wage in Michigan, we have some new info available for you. It may change your opinion, or it may not, but it’s always good to be fully informed on things like this!
Here are Five Fast Facts about the increasing minimum wage:
- 📈 Going Up - There are two key wage rates, one for tipped workers and a minimum for everyone else. In Michigan, the minimum is currently $10.33, goes up to $12 next year, and up to $15 in 2028. The 125,000 tipped workers in the state currently get $3.93 per hour, going up to about $6 per hour next year, on the way to eventually matching the minimum wage.
- 👍 The Argument For - Supporters say the increase for tipped workers is great because lower income workers are guaranteed to make more money. Because everything happens in a vacuum, right?
- 👎 The Argument Against - Opponents say the increased costs will kill many small businesses and increase costs for customers across the board. Workers also fear that customers will tip less, leading to a two-way squeeze on earnings especially in the short term before their wage hits the standard minimum. In the meantime, they should just lean into their employee discount on food, apparently.
- ✅ Survey Says - A recent MI Restaurant and Lodging Association survey of restaurant owners shows 94% would raise prices by 25%, two thirds would lay off employees, and one in five restaurants would close entirely, resulting in as many as 60,000 jobs lost. 🤯
- 🧑⚖️ Interesting Spin - The former state Attorney General suggests that the MI Supreme Court’s decision to support the increase actually exceeded the court’s authority and dabbled in economic policy, which is something only the legislature should do. But wait, nowadays aren’t judges just activists in black robes?
🔥Bottom line: We’re always fans of folks making more money. But the toss-up between higher wages for those with jobs and the loss of jobs entirely is a tricky one, and probably depends on which camp you end up in. Overall, it doesn’t seem like this is going to end well, but time will tell.
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