Michigan officials finalize minimum wage increases through 2030
(CBS DETROIT) - Michigan's minimum wage will go up to $12.48 per hour in February 2025.
It was a ruling by the Michigan Supreme Court earlier this summer that set Tuesday's finalized changes to our state's minimum wage in motion. In the months since the ruling, the upcoming changes have been met with mixed responses.
"That is going to affect small business in this state, and it's going to be damning," said Chopper Schrauber, a restaurant owner in Portland, Michigan.
This week, state officials finalized the new minimum and tipped wage schedule through 2030.
Michigan's minimum wage will rise to $12.48 per hour, and the tipped wage will rise to $5.99 an hour, which is a little less than half the standard minimum wage. In the coming years, both will increase, which is good news for workers. However, restaurant owners say it's going to be a burden.
"What it's going to do is we are going to have to raise our prices between 20 and 30% just to make up for that wage," said Schrauber.
Over the next five years, the tipped minimum wage will be phased out, meaning the minimum wage will be the same for workers whether or not they get tips. For business owners, that means higher labor costs, which he says could be a strain.
"For you know, small mom-and-pop restaurants, all of a sudden they go from being prideful and being able to take care of their kids now they have to get food assistance or rent assistance," said Jason Hester, a restaurant owner in Burton, Michigan.
For Justin Winslow, who serves as president of the Michigan Restaurant and Lodging Association, the next step is asking lawmakers for help.
"That's going to come after the election, unfortunately, so we've got this month or so of time between now and then in which to continue to communicate, but we're just not going to see much legislative action in the meantime," said Winslow.