Michigan’s higher minimum wage a boon to workers, here to stay, advocate says

• The Michigan Supreme Court this week reinstated a law raising the minimum wage to over $12, ending the $3.93 tipped minimum
• One Fair Wage’s president, Saru Jayaraman, says the decision impacts nearly 500,000 workers, including those making up to $13.80 per hour, who could all see wage increases
• Despite industry fears of price hikes and layoffs, Jayaraman cites data from seven states with full minimum wages that show higher job growth and restaurant sales

The president of a national advocacy group that pushed to raise Michigan’s minimum wage says industry fears about the increase are unfounded and putting more money in workers’ pockets will help the economy.

Saru Jayaraman is president of  One Fair Wage, a national advocacy organization based in New York that has campaigned for wage increases and wage reform across the country. The organization’s Michigan chapter succeeded in getting a proposal on the 2018 general election ballot.

But a GOP-controlled Legislature approved that law in 2018, removing it from the November ballot.

Months later, using a law unique to Michigan, lawmakers weakened the law and removed the provision calling for all workers — tipped or otherwise — to make the full minimum wage. 

The Michigan Supreme Court this week rejected that legislative action and implemented the laws. 

Related:

• Michigan minimum wage increase is ‘nightmare’ for restaurants, industry says
• What to know about Michigan’s pending minimum wage changes
• Michigan minimum wage to rise, tipped wage to disappear, under blockbuster ruling

Minimum wage is now scheduled to jump to over $12 next year, up from the current $10.33. It also will end employers’ ability to pay a “tipped” minimum of $3.93 to workers like servers and bartenders.

Jayaraman said the Economic Policy Institute estimated that 500,000 workers could benefit from the decision. (Other sources put the figure at much lower, closer to 60,000)

Bridge Michigan caught up with Jayaraman the day after the decision.

Was it a victory?

It was beyond a victory. It was an incredibly historic day for Michigan and for restaurant workers all over the United States. 

What about labor statistics that show the average server and bartender in Michigan makes well above minimum wage — the average is $17 to $19 an hour including tips?

That’s not true. The US Department of Labor has listed tipped occupations as the fourth-lowest paying occupations in the United States for decades including tips, even when tips are taken into account. Most workers actually do not make enough to make ends meet.

The restaurant industry has decried the decision, saying if allowed to go into effect that food prices rise, people will be laid off and some restaurants will close. Do you agree and if so, would it be worth it for the higher wages?

There are seven states that already have a full minimum wage (California, Oregon, Nevada, Montana, Minnesota and Alaska). Most of them are already at $15 (an hour) plus tips. … Those seven states have the same or higher restaurant sales per capita. 

They actually have higher small business growth rates in the  restaurant industry than Michigan. Higher overall job growth rates, higher full service restaurant employment growth rates, higher tipping averages than Michigan and one-half the rate of sexual harassment.

There is zero evidence that any of the things that you said would happen… We’ve seen the opposite to be true. In states with a full minimum wage data, $15 plus tips, put more money in workers’ pockets and guess what they do? They consume and that helps small business and big businesses as well.

The hospitality industry is calling upon lawmakers to pass legislation to offer relief before the raise goes into effect in February. Some lawmakers have appeared receptive.  Are you concerned? 

We are convinced Democrats are not going to reduce worker wages…. I don’t think that’s going to happen. There’s very little chance … We’ve been talking to lawmakers about frankly increasing the wage to $15.

Republicans have blocked the previous attempts to put a minimum wage increase on the ballot in 2014, 2018 and this year.

What are they so afraid of allowing the public to vote on this, allowing Democracy to occur? Because they know when it goes to the ballot it will pass. …If Republicans are going to block that then Democrats should grant them what they’ve been asking for for decades.