By Alethia Kasben
Gongwer News Service
In a filing last month, Attorney General Dana Nessel said the state would move forward with a minimum wage increase plan that would reach $14.97 by 2028 unless the Supreme Court gave further clarification on a recent ruling by September 15.
The date came and went on Sunday with no answer from the Supreme Court. The court does not have to abide by any requested deadline in a filing, however. And the Department of Treasury has until November 1 to submit its wage increase plan.
Last month, Nessel said Treasury and the Department of Labor and Economic Opportunity had questions on how to adjust the minimum wage with the inflation metric, as instructed by the court. The filing said the court did not set a start date for when Treasury should begin calculating the inflation rate.
As to how to calculate the inflation adjustment for the new minimum wage, the filing presented several options but said Treasury believes the court intended for it to begin calculating inflation on January 1, 2019, through July 31, when the adopt and amend ruling was issued.
This would mean the minimum wage would be $12.48 in 2025, $13.29 in 2026, $14.16 in 2027 and $14.97 in 2028.
Nessel wrote without being ordered differently by the court, that is the wage plan Treasury would submit in November.
Officials also had questions on the implementation date of the wage increases. Nessel said if the court doesn’t order the agency differently, it will implement the new 2025 minimum wage in February and use the January 1 date for subsequent years.
Finally, the filing said state law doesn’t use the term “tip credit,” and said the agency would implement the “tip credit,” as the baseline minimum wage referenced in law. It also noted the 2018 initiatives included a phase in of the lower wage at 90 percent of the regular minimum wage, which the court didn’t include in its graduated phase in.
Some business groups filed responses to the clarification request that included lower wage schedules.
The Michigan Manufacturers Association wrote the inflation adjustment start date should be October 2021. Under the MMA’s calculations, the minimum wage would increase to $11.36 an hour in 2025 and reach $13.63 in 2028.
The Michigan Restaurant and Lodging Association said the inflation adjustment start date would change to each year the original wage increase was scheduled to take effect. This would lead to wage increases in 2025, 2026 and 2027, before a decrease in 2028. Under MRLA’s argument, the minimum wage would be $12.50 in 2025 and reach $13.65 in 2027 before going down to $13.43 in 2028.
Gongwer News Service
In a filing last month, Attorney General Dana Nessel said the state would move forward with a minimum wage increase plan that would reach $14.97 by 2028 unless the Supreme Court gave further clarification on a recent ruling by September 15.
The date came and went on Sunday with no answer from the Supreme Court. The court does not have to abide by any requested deadline in a filing, however. And the Department of Treasury has until November 1 to submit its wage increase plan.
Last month, Nessel said Treasury and the Department of Labor and Economic Opportunity had questions on how to adjust the minimum wage with the inflation metric, as instructed by the court. The filing said the court did not set a start date for when Treasury should begin calculating the inflation rate.
As to how to calculate the inflation adjustment for the new minimum wage, the filing presented several options but said Treasury believes the court intended for it to begin calculating inflation on January 1, 2019, through July 31, when the adopt and amend ruling was issued.
This would mean the minimum wage would be $12.48 in 2025, $13.29 in 2026, $14.16 in 2027 and $14.97 in 2028.
Nessel wrote without being ordered differently by the court, that is the wage plan Treasury would submit in November.
Officials also had questions on the implementation date of the wage increases. Nessel said if the court doesn’t order the agency differently, it will implement the new 2025 minimum wage in February and use the January 1 date for subsequent years.
Finally, the filing said state law doesn’t use the term “tip credit,” and said the agency would implement the “tip credit,” as the baseline minimum wage referenced in law. It also noted the 2018 initiatives included a phase in of the lower wage at 90 percent of the regular minimum wage, which the court didn’t include in its graduated phase in.
Some business groups filed responses to the clarification request that included lower wage schedules.
The Michigan Manufacturers Association wrote the inflation adjustment start date should be October 2021. Under the MMA’s calculations, the minimum wage would increase to $11.36 an hour in 2025 and reach $13.63 in 2028.
The Michigan Restaurant and Lodging Association said the inflation adjustment start date would change to each year the original wage increase was scheduled to take effect. This would lead to wage increases in 2025, 2026 and 2027, before a decrease in 2028. Under MRLA’s argument, the minimum wage would be $12.50 in 2025 and reach $13.65 in 2027 before going down to $13.43 in 2028.
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