Restaurant, retail organizations oppose wage hike - WNEM TV 5

Restaurant, retail organizations oppose wage hike

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LANSING, Mich. (AP) -

Restaurant and retail associations are opposing a minimum wage increase now before the Republican-controlled Michigan House.

The Michigan Restaurant Association and other groups told a House committee hearing Wednesday that increasing the wage would hurt businesses. Many members say a Democratic-backed ballot drive to raise the wage to $10.10 an hour would be "devastating" because it eliminates a separate payment scale for tipper workers.

Restaurants say they could support a revision to a Republican Senate bill that raises the wage to $9.20 from $7.40 by 2017, and to $3.50 from $2.65 for tipped workers. They're urging House members not to tie the wage to inflation, as it is in the Senate bill.

The GOP-led Senate last week passed the bill with bipartisan support. The bill could thwart the ballot effort.

Copyright 2014 Associated Press. All rights reserved.

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