LANSING, Mich. (WZMQ) – A recent decision from the state’s highest court will reverse amendments made to Michigan’s minimum wage laws. On February 21, 2025, the minimum wage is now set to increase from $10.33 to $12 an hour, and then $15 by 2028. Adjusted wages for tipped workers will be bumped up from $3.93 to about $6 an hour.
In 2018, Michigan’s legislature adopted a ballot measure that would have raised the minimum wage to over $13 an hour by 2023 and phased out tipped wages, but before passing that measure lawmakers made changes that slowed down the schedule for raises and kept sub-minimum wages.
On July 31st, the Michigan Supreme Court overturned the “adopt and amend” tactic.
“The Michigan constitution provides the legislature with three—and only three—options upon receiving a valid initiative petition. the legislature may not adopt an initiative petition and then later amend it in the same legislative session; such an act violates the people’s right to propose and enact laws.”
The decision is one that advocacy groups like One Fair Wage have been standing up for. Justin Onwenu, Co-Organizing Director for the group in Michigan said they were excited to see a victory for workers,
“We’re really excited. Hundreds of thousands of Michiganders are going to get a raise and it’s long overdue.” Onwenu said. “We want to make sure that workers get the raise that they deserve. Of course, we want to make sure that that’s done responsibly and reasonably.”
The original measure is set to become the new Michigan Wage Act, setting a faster schedule for wage increases. According to the ruling, because the law would have gone into effect 205 days after enactment, it will now go into effect 205 days after July 31, 2024.
Justin Winslow, the President of Michigan’s Restaurant and Lodging Association said that schedule is something business owners can adjust to, but the changes to the tipped wage system could cause problems.
Winslow said that by getting rid of tipped wages, the cost of employment for full-service restaurants, diners, and small businesses could become higher than owners can afford, causing layoffs and price increases.
The original initiative increased the minimum wage for tipped employees from 38% of the minimum wage to 48% in 2019; 60% in 2020; 70% in 2021; 80% in 2022; 90% in 2023; and eliminating the tipped wage system by 2023.
Adjusted for time, tipped workers will now gradually see their pay raise from the current $3.93 an hour to the standard minimum wage by 2029.
“The tipped minimum wage is so abrupt, so significant, and so a major part of this industry, that’s where the real chaos comes in,” Winslow said. “They are very nervous they’re gonna push people away. That traffic’s gonna go down, and that leads to more closures.”
Winslow said there is still a chance for the lawmakers to pass a new wage act this fall that would supersede the 2018 law, but advocates for the decision say the gradual increase will allow restaurants to adjust and are pushing to make sure the original measure is honored.
