MI minimum wage increase could spark trend

Starting next year, Michigan employers will need to pay workers more than $12 an hour, following a landmark ruling from the state Supreme Court.

The 4-to-3 decision reignited Michigan's 2018 ballot initiatives on the minimum wage and paid sick leave.

The wage will be $10 per hour, plus an adjustment for inflation since 2018. The ruling should mean higher pay for more than 800,000 workers in Michigan, including a 48% increase for tipped workers.

Saru Jayaraman, president of the advocacy group One Fair Wage, said her organization has been working for more than a decade to see this change in Michigan.

"By 2028, 1.2 million workers will get a raise," Jayaraman pointed out. "But it also means that Michigan becomes the first state in 40 years, and the first state east of the Mississippi, to end the subminimum wage for tipped workers, which is a direct legacy of slavery."

The head of Michigan's Restaurant and Lodging Association called the court decision "tone-deaf" In a statement, Justin Winslow said 40% of full-service restaurants in Michigan are already unprofitable and predicted the decision could force more of them to close permanently, eliminating up to 60,000 jobs.

However, other states are following suit. Jayaraman pointed out states with pending legislation to raise their minimum wages include Colorado, Illinois, Maryland, Massachusetts and Ohio.

"In total, we actually have this moving right now in a dozen states around the country," Jayaraman observed. "But Michigan is the first, the first to go."

The ruling also paves the way for extensive changes in worker compensation and benefits in Michigan. Those will not take effect until late February next year. In the meantime, Jayaraman added her group is also advocating for an increase in the federal minimum wage, which has been $7.25 an hour since 2009.