People making the minimum wage in Michigan got a raise Monday. The wage increased from $7.40 an hour to $8.15 an hour.
It will eventually rise to $9.25 an hour by 2018 and increase with inflation after that. That stops if the state’s unemployment rate goes above 8.5 percent.
The Michigan Restaurant Association (MRA), which lobbied against the minimum wage increase, says it expects some restaurants will raise menu prices because of Monday’s increase.
“About a third of the costs to operate a restaurant is labor, so really any increase in the wages will have an impact on the restaurants,” said MRA President Brian DeBano.
Supporters of a higher minimum wage say the increase is modest – and shouldn’t have a significant impact on businesses. They say someone supporting a family of three will still be making poverty wages working full time at $8.15 an hour.
“Even at $9.25, it’s still going to be pretty low for many families to make ends meet,” said Yannet Lathrop with the Michigan League for Public Policy. “And even for some single people, even single people have many things that they need to buy, basic needs. And even at $9.25 for them it’s going to be a little tough.”
Lathrop says she’s disappointed an initiative to raise Michigan’s minimum wage to $10.10 an hour did not collect enough valid signatures to get on the November ballot. Brian DeBano with the Michigan Restaurant Association said that proposal would have been “catastrophic” for Michigan restaurants.