Oct 20, 2022 - News

Whitmer says minimum wage increase could hurt business

Gov. Whitmer and Lt. Gov. Garlin Gilchrist

Gov. Whitmer and Lt. Gov. Garlin Gilchrist. Photo: Samuel Robinson/Axios

Gov. Gretchen Whitmer told Crain's Detroit Business yesterday that a pending jump in Michigan's minimum wage is likely unsustainable for businesses.

Driving the news: The current $9.87 hourly minimum wage — scheduled to rise to $10.10 in January — is set to $12 on Feb. 20 and increase annually with inflation.

  • It wasn't set to rise until a judge deemed a legislative maneuver known as adopt-and-amend — which effectively killed a successful 2018 ballot proposal to increase the minimum wage — unconstitutional in a state court of claims this summer.
  • Whitmer is now urging lawmakers to work with her to phase in the increase to prevent an overnight hike, Crain's reports.

What she's saying: "There are some who say it should go into effect overnight. I know the hardship that's going to create for business. That's why I'm saying I would love to sit at the table and cobble together a plan that makes sense," she told Crain's.

Between the lines: Whitmer's suggestion is a win for the business community she's campaigned hard to win over.

  • It would be a loss for workers, particularly for tipped workers who stand to jump from $3.75 an hour to $9.60 and equal the minimum wage by 2024.

Get more local stories in your inbox with Axios Detroit.


Support local journalism by becoming a member.

Learn more

More Detroit stories

No stories could be found


Get a free daily digest of the most important news in your backyard with Axios Detroit.


Support local journalism by becoming a member.

Learn more