2014-05-31 / News

State Minimum Wage Going Up

Michigan’s minimum wage will go up to $9.25 an hour by 2018 under a law signed by the governor Tuesday, May 27. The measure increases the minimum wage from $7.40 an hour over the next four years and would be adjusted to the rate of inflation or 3.5%, whichever is lower, starting in 2019. Tipped employees will be paid at a rate that is 38% of the minimum, or about $3.51 an hour.

Governor Rick Snyder said he approved the measure because it will help workers without hindering the state’s improving economy.

The number of jobs filled in Michigan has increased steadily since the start of 2011, the governor pointed out, with more than a quarter-million new private sector positions created. The state’s unemployment rate has dropped to 7.4%, its lowest rate since 2008.

Senate Bill 934 is now Public Act 138 of 2014.

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