Michigan House Bill HB6287

Michigan 2023-2024 Regular Session

• Introduced: 12/12/24
• Refer: 12/12/24

Caption

Labor: hours and wages; minimum wage; modify. Amends sec. 4 of 2018 PA 337 (MCL 408.934).

Impact

The bill establishes that every October, starting from 2022 to 2030, the state treasurer will calculate an adjusted minimum wage rate based on inflation. This means that the minimum wage will not only increase annually but will also be sensitive to changes in the cost of living as indicated by the Consumer Price Index (CPI-W). Such adjustments are intended to bolster the purchasing power of low-wage workers and protect them from economic downturns. However, increases in the minimum wage could be suspended if the unemployment rate exceeds 8.5% in the preceding year, adding a safety valve to the proposed wage hikes.

Summary

House Bill 6287 seeks to amend the Improved Workforce Opportunity Wage Act of 2018 by adjusting the minimum wage rates in Michigan. The bill proposes an incremental increase in the minimum hourly wage, starting from $10.00 in 2019 to potentially reaching $20.00 by 2030. This structured approach aims to provide a clear pathway for wage growth, aiming to ensure that workers' earnings keep pace with economic conditions.

Contention

Despite the intent to support workers, the bill has raised concerns among various stakeholders. Opponents argue that steep increases in the minimum wage could lead to unintended consequences such as higher unemployment rates or increased operational costs for businesses, particularly small and medium enterprises which may struggle to absorb these costs. Advocates for economic freedom believe that these measures might disproportionately affect economic growth and job availability in the state. Consequently, debates surrounding this bill focus not only on the significance of fair wages but also on the broader implications for the state's economic environment.