The Craig Fahle Show

State Senate Approves $9.20 Minimum Wage

Monday, May 19, 2014

Chris Gautz of Crain's Detroit Business explains the warring minimum wage bills, one of which was approved by Michigan state Senators yesterday. This bill, introduced by Senate Majority Leader Randy Richardville, would repeal the state's current minimum wage law of $7.40 and increase it to $9.20 by 2017.

It now moves on to the House for approval.

"Richardville’s bill repeals the state’s current minimum wage law, for which the group Raise Michigan has been collecting signatures for months to amend so voters could decide in November whether to raise the regular and tipped minimum wages to $10.10 an hour by 2017. If Richardville’s bill becomes law first, the ballot measure would be rendered moot because it would be seeking to amend a law that no longer exists." Excerpt from Crain's Detroit Business

According to Gautz, the shift Republicans are trying to avoid is the increase tipped wage from $2.65 to $10.10. He says under current legislation, if a tipped employee does not make the minimum hourly wage of $7.40 with tips, the employer must make up the difference.