This week the Senate voted to make changes to the state’s minimum wage. In September, the House and Senate voted to approve of two citizen’s initiatives; one of them being an increase to the state’s minimum wage for both tipped and non-tipped employees. “Because the Senate voted to adopt the measure they only needed a majority of members elected and serving to make changes. Had the proposal been approved by voters in the general election, they would have needed two-thirds of members elected and serving to change the legislation,” explained Matt Sowash of MLC. This fact has brought about some controversy, those against this action state that it circumvents the will of Michigan residents, as the ballot proposal received the necessary signatures of hundreds of thousands of Michigan residents to be placed on the general election ballot. However, those who are in favor of the changes passed by the Senate state they are making the bill more feasible for businesses in Michigan and the changes will help Michigan remain competitive.

As originally adopted by the Senate, the state’s minimum wage for non-tipped employees would have incrementally increased to $12/hour by January 1, 2022. Additionally, it would have incrementally increased the minimum wage for tipped employees until it matched the $12/hour minimum wage for non-tipped workers. Under the legislation passed this week, the state’s minimum wage would be increased $12/hour in 2030. Furthermore, instead the minimum wage for tipped employees being 38% of the state’s minimum wage, the “tip wage” would drop to 33% of the state’s minimum wage by 2030 ($4.00/hour).

The legislation was referred to the House Michigan Competitiveness Committee for consideration. The committee is chaired by Speaker-elect Representative Lee Chatfield (R-Levering).

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