Michigan group celebrates minimum wage increase
(CBS DETROIT) — Michigan's minimum wage workers will receive a raise in 2025 thanks to a summer ruling from the state Supreme Court. It was the final step in a years-long battle to raise Michigan's minimum wage.
"I got chills because I know we're moving in the right direction, I know that it was the right decision and we're moving forward," said bartender James Hawk.
Early next year, workers like Hawk will be earning $12.50 an hour, a wage rate that Michigan initially wouldn't reach until 2030.
"It'll mean a lot, it'll mean bills can get paid. Also, we are now able to get paid sick leave," said Hawk.
The ruling also expands sick leave for workers and phases out the sub-minimum wage for tipped workers. For labor organizers like Hawk, these upcoming changes are a win. However, business owners and the Michigan Restaurant and Lodging Association have voiced concern about the unforeseen impact of these changes.
"It's really demotivating if people make minimum wage. I mean these servers won't stay in the industry if they're going to make $14 an hour and not make tips. Why would they do that?" said Jason Hester, the owner of a diner in Burton. "You know there's no incentive, and then there's no incentive for them to give good service anymore. There's just so many negatives."
Hawk told CBS News Detroit he encourages businesses to adapt, get more information, or even take classes with One Fair Wage to stay in business.
"Someone coming in who obviously didn't have the wherewithal to understand all the implications of the decisions they were making isn't going to tell us how to do our business any better," Hester said. "We know what it takes to operate our businesses and be successful."
Michigan's minimum wage is set to go up next February.