The new year rings in wage increases for Michigan workers

LANSING, Mich. (WILX) - Just as we rang in the New Year, Michigan’s minimum wage increased, requiring businesses to pay low-paid workers more per hour.

Some advocates said it’s not enough.

When the state legislature passed a bill saying minimum wage is now going up to $10.33 per hour, some businesses said they were against paying employees a higher wage.

“If you look at the MIT Living Wage Calculator, that shows you the basic costs of food, housing, transportation, you’re way above 25 dollars an hour in terms of what people actually need to cover the cost of living,” said Saru Jayaraman, president of One Fair Wage.

Jayaraman is fighting for proper compensation for working families. She said Monday’s wage increase is not enough for people in Michigan to cover the cost of living and keep up with rising inflation.

She said, “A raise of a few pennies is not nearly enough to cover what people need.”

Some businesses, like Henry’s Place in Meridian Township, already pay their workers more than minimum wage, leaving customers to deal with higher-priced menu items.

“I mean, it’s good for the workers because I think they’re going to make more money. But I think it’s going to get passed down to the customers in the end,” said Henry Kwok, owner of Henry’s Place.

Tim Nash, director of the McNair Center at Northwood University, said economists should set wages. He said setting a minimum wage requires employers to pay workers more than the market wants, causing jobs to relocate to a neighboring state with lower wages and taxes.

“We’ve had a lot of businesses leave Michigan to go to Indiana, and you just worry if this is going to cause more of that to happen,” said Nash.

Jayaraman said they are pushing to get a minimum wage of $15 per hour on the November 2024 ballot.

Also, starting Jan. 1, minimum hourly wage rates for minors aged 16 and 17 will increase to $8.78 per hour. Tipped workers’ pay will increase to $3.93 per hour. The minimum wage increases could increase in 2024 depending on the outcome of a legal challenge filed by the Michigan Supreme Court.

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