Governor
Snyder signed Senate
Bill 934 raising the state’s minimum wage to $9.25 per hour on Tuesday
evening. The bill, which required bipartisan support, passed the House 76-34
and the Senate 24-12. SB
934 repeals the current minimum wage law possibly negating the ballot
initiative being circulated.
SB
934 was passed with immediate effect and will see the first increase in the
minimum wage occur on September 1 of this year when it will rise to $8.15 per
hour. The increases will continue to $8.50, $8.90, and $9.25 on January 1 of
2016, 2017, and 2018 respectively. After 2018 the raise in minimum wage is tied
to the five-year rolling average of the Consumer Price Index (CPI) for the
Midwest done by the U.S. Bureau of Labor Statistics. This increase from the CPI
would take place on April 1 of every year and is capped at 3.5%. According to
the bill, increases will be stopped if the state unemployment rate reaches 8.5%
in the prior year. SB
934 addressed tipped employees as well making their minimum wage 38% of the
regular minimum wage.
The
passage of this bill was something to celebrate for Democrats as their
gubernatorial candidate Mark Schauer had pushed for similar legislation last year.
Minority House Leader Tim Greimel (D-Auburn Hills) and Senate Minority Leader
Gretchen Whitmer (D-East Lansing) joined in the celebration. Greimel and
Whitmer both remarked on how tying the minimum wage to the Consumer Price Index
was a victory for minimum wage workers throughout the state.
Republicans
had a hard time accepting the bill but viewed it as the only viable option as a
ballot initiative garnering support would have raised minimum wage to $10.10
per hour and raised tipped minimum wage to 100% of the regular minimum wage.
Representative Tom McMillin (R-Rochester Hills) spoke against the bill on the
floor saying, “This legislation treats businesses like they’re the bad guys
again.” He was joined in his opposition by 31 other Republicans and 2 Democrats
in the House as well as 10 Senate Republicans and 2 Senate Democrats. Senate
Majority Leader Randy Richardville (R-Monroe) and Senate Minority Leader
Gretchen Whitmer (D-East Lansing) agreed at the Governor’s news conference that
the bill was a good example of bipartisanship and the negotiations involved
give and take from both sides of the aisle.
Both
the Michigan Restaurant Association (MRA) and the Michigan League for Public
Policy commented after the passage of the bill. The MRA considered the bill a
sensible compromise while the League for Public Policy claimed that the ballot
initiative would have been a better approach for Michigan workers and that this
bill did not raise the minimum wage to an acceptable level.