Whitmer says minimum wage increase could hurt business
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.
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