minimum wage briefing. history of the minimum wage in mi yearfederalmichigan 1983$3.35 1996$4.75...
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![Page 1: Minimum Wage Briefing. History of the Minimum Wage in MI YearFederalMichigan 1983$3.35 1996$4.75 1997$5.15 2006$5.15$6.95 2007$5.85$7.15 2008$6.55$7.40](https://reader036.vdocuments.mx/reader036/viewer/2022062515/56649ce35503460f949af95a/html5/thumbnails/1.jpg)
Minimum Wage Briefing
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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
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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
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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
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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.
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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.
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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
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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
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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%
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Questions?
Wendy BlockDirector, Health Policy & Human Resources
Michigan Chamber of Commerce517/371-7678 (office)