Michigan voters could be deciding a lot more than who is simply elected Michigan’s 49th Governor in November should an activist organization named “Raise Michigan” have their way.  The group submitted ballot proposal language to the Department of State’s Bureau of Elections for consideration on February 10, 2014. If they are successful in gathering the necessary 258,088 signatures of registered voters by May 28, Michigan voters would have the choice of raising the state’s minimum wage to $9.50 per hour by 2016.

The ballot proposal as written would increase the minimum wage to $7.90 in January 2015, then $8.40 in July 2015 before peaking at $9.50 in January 2016. Annual cost-of-living adjustments are also part of the proposal. Not surprisingly, the initiative is raising the ire of business groups across the state, but one element has restaurant owners particularly concerned; the ballot language proposes to increase the minimum wage for tipped workers by $0.85 cents annually until they reach $9.50 per hour as well. Tipped workers currently receive $2.65 per hour. Restaurant and small business owners alike believe the initiative could have serious repercussions for consumers and the state economy, which, in their opinion remains fragile. Many within the hospitality industry purport that any increase in wages would likely translate into increased food costs and businesses closing their doors. Opponents also assert Michigan is already competitive as the state’s current minimum wage of $7.40 is above the national minimum wage of $7.25, and thus should not be tinkered with.

Proponents believe they have public support on their side and are energized in moving forward. What’s obvious is the rhetoric is sure to heat up as this political and populous hot potato unfolds.
 
**Editorial Note: As of February 18, 2014 the “Raise Michigan” organization has reconsidered their original proposal and will now be pursuing a minimum wage increase of $10.10 by 2017.