State focuses on minimum wage bill

LANSING (AP) - The Legislature delivered some good news to workers who earn Michigan's $3.35 minimum wage by agreeing yesterday to increase their pay for the first time in 16 years.

Competing bills passed by the Senate and the House - one sponsored by a Republican and one by a Democrat - would raise the state minimum wage, first to $4.75 an hour and then to $5.15 an hour.

The hikes only apply to the approximately 100,000 employees of companies that do no out-of-state business and gross less than $500,000 a year, and mirror already enacted increases in the federal rate that apply to all other workers.

"It has marginal impact, but if you're one of the people making less than $4.75 an hour it has a big impact," said Rep. Bob Emerson (D-Flint) who sponsored the House version.

"As long as it applies to somebody, it has more impact than just posturing."

Approving a minimum wage increase, an issue left over from last year when it passed the House but was shunned by the Senate, now gives both Republicans and Democrats the chance to claim credit as another election year approaches.

With that in mind, the Republican-controlled Senate and Democratic-controlled House approved separate bills that contain provisions favored by their majorities and interests supportive of them.

The Senate voted 37-1 for its bill, with Rep. Dale Shugars (R-Portage) the sole "no" vote. The House approved Emerson's measure 74-29.

But the votes on differing versions came despite the fact that key lawmakers already have agreed what the final legislation will look like.

Negotiations between the two chambers centered around the age limit for the minimum wage and how much base pay waiters and waitresses should receive.

The House bill would bring workers older than 14 under the minimum wage law. The Senate bill would retain the current 18-year-old limit. Lawmakers said the final version will set the limit at 16 years old.

And the Democratically-run House wanted to raise the hourly salary tipped restaurant employees receive from the current $2.52 to $3.87 an hour. But the Republican-controlled Senate opposed that move. The agreement would allow for a 13-cent hike to $2.65 an hour.

Other provisions lawmakers said would make up the final legislation include:

n Raising the minimum wage from the current $3.35 an hour to $4.75 on July 1 and to $5.15 on Jan. 1, 1998.

n Permitting a $4.25 "training wage" for employees less than 20 years old for the first 90 days of work.

n Allowing employees to choose time off instead of money as compensation for overtime, if both worker and employer agree.

The changes will be incorporated into both bills, which will be tied together, and both chambers will pass the new versions next Tuesday, Emerson said.

But Sen. Mike Rogers said the agreement was "not set in stone," and that he planned to oppose raising restaurant workers' tipped pay even by 13 cents an hour. The Howell Republican said such as increase would result in fewer jobs for wait staff and higher prices for average people trying to go out to eat.

"If you want to kick working women in the teeth, if you want to kick single mothers who have the flexibility of these waitressing jobs in the teeth, this is the way to do it," he said. "This is bad, bad, bad."

Despite that battle, waiters and waitresses may get other good news.

Senate Republicans plan this week to introduce a bill that would exempt all tips from state taxes.

Several lawmakers predicated quick passage for the measure, but said Gov. John Engler has indicated he would veto it.

02-13-97

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