Last year, the federal government raised the minimum wage from $4.25 per hour to eventually reach $5.15. The state proposal closely resembles the federal raise. Also, the state minimum-wage hike would only affect companies that do not engage in interstate commerce and that have gross receipts of less than $500,000 per year.
The bill before the Senate's Human Resources and Labor Committee would allow employees who earn tips to receive $2.52 per hour, so long as the tips add up to the minimum wage. Moreover, the bill would provide for a $4.25 per-hour training wage that would benefit employees less than 20 years old for the first 90 days of work. Taken together, this proposal would undoubtedly help a significant amount of Michigan residents and employees - the Senate should pass it.
The state has not raised the minimum wage in 19 years; it is long overdue. A raise to $4.75 in July and then to $5.15 next September would greatly benefit working families. Many low-income families rely on minimum-wage jobs as their primary and/or secondary source of financial compensation.
As the cost-of-living rises, so must the minimum wage to help such families stay financially solvent. As AFL-CIO Director Tim Hughes said recently, raising the minimum wage is "a basic issue of fairness."
Moreover, many college students work in part-time, minimum-wage jobs. Often, they work in small stores in small college towns - the same enterprises that the Senate bill directly affects. Hence, a raise in the minimum wage would possibly benefit college students and help them afford spiraling tuition costs.
The bill's other provisions, besides the main wage hike, contain responsible public policy. For example, even though a person who collects tips may earn only $2.52 per hour under the proposal, the legislation guarantees that the individual would never make less than the minimum wage. This important provision not only is consistent with the spirit of the wage hike, it would ensure that this segment of the population receives raises as well.
Both Republicans and Democrats have acknowledged that some form of a minimum-wage hike will pass soon. The bill before the Senate is a sound proposal - one that would benefit workers and would not adversely affect businesses. The Legislature should pass this bill, or a similar version - 19 years is long enough to wait for fairness.