Michigan lawmakers offer competing plans to raise minimum wage
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Michigan's minimum wage is front and center as state lawmakers resume session.
Why it matters: A state Supreme Court ruling last year would phase out the state's tipped wage system by 2030.
- The minimum wage for tipped workers is now about 38% of the standard minimum wage.
Driving the news: Pro-business groups are urging lawmakers to preserve the tipped wage system before the court's ruling takes effect on Feb. 21.
- The court's ruling also would expand paid sick time laws — another feature some business groups oppose.
Between the lines: The choice before lawmakers is whether to allow tipped wages to be gradually eliminated — with unknown effects on the state's tipping culture.
Catch up quick: The state's minimum wage already increased Jan. 1 from $10.33 to $10.56 per hour on its usual increase schedule.
- Under the state Supreme Court's ruling, the minimum wage will increase again on Feb. 21 to $12.48. Tipped workers' minimum wage will increase from $4.01 an hour to $5.99.
- The standard minimum wage would increase incrementally every year to $14.97 in 2028.
- The tipped minimum wage would gradually rise from 38% of the standard minimum wage to 100% by 2030.
State of play: Republicans want to change that schedule before the court's ruling takes effect. The GOP regained control of the state House this year after two years of Democratic control.
- Their first order of business last week when session began Wednesday was introducing legislation to preserve tipped wages at 38% of the minimum wage, and to prevent certain changes to paid sick leave mandates. The standard minimum wage would be $15 by 2029 under the proposal.
What they're saying: "Hardworking restaurant employees and small businesses are facing a looming cliff that will rob them of their well-earned tips and could shutter many family-owned businesses," Rep. Bill G. Schuette (R-Midland), who has been named to lead a new committee on workers' and small businesses' issues, said in a statement.
The other side: Senate Democrats advanced a different minimum wage proposal last week, the Detroit News reported.
- Sen. Kevin Hertel (D-St. Clair Shores) introduced a bill that would gradually increase the tipped minimum wage to 60% of the traditional minimum wage over a 10-year period.
Context: One Fair Wage Michigan, which has supported the changes in the Supreme Court's ruling, says that maintaining a tipped wage would "disproportionately harm women, people of color and immigrant workers, who make up the majority of tipped employees," per the News.
What's next: Schuette tells Axios his committee will schedule its first hearing on the matter this week.