The saga of minimum wages in Michigan continues! It’s spicier than ghost pepper sauce, and it will have a huge impact on thousands of Paychecks throughout the state, as well as the businesses paying them! So what’s the latest development?
Here are Five Fast Facts on the battle over tips:
- 💲 The Dollars Make Sense - A new law aimed to raise the tipping minimum wage up to match the regular minimum wage over the next few years. It’s currently $3.93, but will rise to $15 by 2028. The regular minimum wage will rise from the current $10.33 up to $15, too. Lawsuits ensued. And then some more lawsuits. Did we mention lawsuits?
- ⌚ It’s About (The) Time - Businesses will also have to provide paid sick leave (the amount depends on how many employees they have). Seems like a great thing for workers, but some say requiring a one-size-fits-all solution like this, well, doesn’t fit all very well, and will end up causing more problems than benefits.
- ☹️ Bad Idea - Many workers fear losing out on tips because they end up with more than even a $15 minimum wage. Many businesses also expect this will cause their labor costs to go up, forcing them to cut jobs. Bad timing, considering many restaurants are just now getting back to full strength after the pandemic!
- 👍 Level The Playing Field - On the other hand, many workers think having to rely on the generosity of strangers for their livelihood is too risky, and don’t like not knowing how big their Paychecks will be. But without surprises you don’t ever get happy surprises! Killjoys.
- 🤔 Compromise In The Air? - There’s been a lot of legal back-and-forth, but it seems there may be a compromise in the making now. A new bill is underway that would raise the normal minimum wage but leave the tipped minimum wage alone. Progress…or maintaining the status quo?
🔥Bottom line: You can debate the pros and cons of the minimum wage and whether tips should exist. That’s how the system works. But the biggest problem we have with this mess is that there is so much confusion, and no one knows exactly what will happen when. What should businesses plan for? What should workers plan for? The change is supposed to kick in next February…but will it?
What do you think about all this mess?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
