Michigan Gov. Rick Snyder signed bipartisan legislation into law on Tuesday that will increase the minimum wage in Michigan to $9.25 an hour by 2018.
The new law will incrementally increase the minimum wage from $7.40 an hour to $9.25 over the next four years. Beginning in 2019, the minimum wage will be adjusted up annually at either 3.5 percent or the rate of inflation, whichever is lower.
“I commend my partners in the legislature for finding common ground on a bill that will help Michigan workers and protect our state’s growing economy,” Snyder said. “Michigan is the comeback state, and our goal always should be long-term success for our residents and our state as a whole.”
The state’s unemployment recently dropped to 7.4 percent, which is the lowest level in six years. More than 250,000 private sector jobs have been created in Michigan since 2011.
Snyder said the new law would not distract from state efforts to foster a high-skilled workforce to fill tens of thousands of skilled positions.
“Our focus has been and will continue to be on helping people obtain the skills they need to be successful and improve the quality of their lives,” Snyder said. “That includes strengthening our education system, building career tech programs and connecting job-creators with schools and colleges. Through the Community Ventures program, we are also helping structurally unemployed adults gain the skills they need to find meaningful jobs.”
Under the new law, the minimum hourly rate for employees who work for tips will be 38 percent of the minimum wage, which amounts to approximately $3.51 an hour.