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Dollars & Sense

How the Michigan wage increase may affect you

Now that Senate Bill 934 has gone into effect, increasing the minimum wage in Michigan from $7.40 an hour to $8.15 per hour on September 1, 2014, here are a few other things you should know about the wage increase:

  • The minimum wage in Michigan will continue to increase, steadily growing over the next three years to:
    • $8.50 per hour on January 1, 2016
    • $8.90 per hour on January 1, 2017
    • $9.25 per hour on January 1, 2018
      – Source: Michigan Chamber of Commerce
  • This new law includes a provision for requiring the minimum wage to grow with inflation once it hits $9.25 an hour. Also, it raises the wage for workers who get tips to 38 percent of the minimum wage. – Source: www.wzzm13.com
  • Findings in an upcoming UpJohn Press book show that, if employment declines as a result of an increase in the minimum wage, such an effect is too small to be statistically detectable. – Source: www.upjohn.org
  • Among small and midsized businesses surveyed, 68 percent said that a minimum wage hike would have no impact on them. –Source: www.crainsdetroit.org

Some Economic Benefits Include:

  • 2.6 million minimum wage workers will be directly affected by the wage increase in 2014. –Source: www.money.cnn.com
  • ”The extra money earned as a result of a minimum wage increase is funneled back into the economy.” – Source: www.ehow.com
  • “Raising the minimum wage would lift almost one million Americans  out of poverty, increase the pay of low-income workers by $31 billion and help build an economy that works for everyone.” – Source: Representative Nancy Pelosi of California
  • Minimum wage increases can result in reduced absenteeism, less turnover and overall stronger morale in employees.”  – Source: www.ehow.com