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Sterling Employment Law

Governor signs Michigan's minimum wage increase legislation

Men and women work hard to build this prosperous nation, and each one of them deserves a fair share of the profits from the companies they dedicate their lives to help succeed. Establishing minimum wage and overtime payment are basic employee rights that fall under the Fair Labor Standards Act. On May 27, 2014, Michigan's governor signed legislation that would increase the minimum wage rate in the state to $9.25 per hour by the year 2018.

This raise, however, would be the slowest among all other states, being gradual and staggered over four and a half years. It has also been argued that $9.25 amount reached in 2018 would be worth about $8.50 in real money if the current rate of inflation continues. Analysts also say that a family of three would remain below the federal poverty line with $9.25 hourly pay.

Raise Michigan, which is a group consisting of labor as well as community organizers, is behind a ballot initiative that is driving to increase the minimum wage to $10.10 by 2017. The group submitted a petition with 319,784 signatures by the May 28, 2014 deadline in support of the November ballot initiative. However, it is not yet clear whether the new law would hamper the group's $10.10 measure from coming into effect.

Also, the new legislation signed into law by the governor increases the minimum wage of tip-earners from $2.65 to $3.52. The ballot initiative would apply the $10.10 an hour wage to all employees, eliminating the tipped wage scale. Whatever may be the current labor law in one's state, if a worker is deprived of his or her rights in the workplace, they should contact an experienced attorney.

Source: Detroit Free Press,"5 things to know about Michigan's minimum wage raise,"May 29, 2014

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