1. Minimum Wage Briefing

2. History of the Minimum Wage in MI YearFederalMichigan 1983$3.35 1996$4.75 1997$5.15 2006$5.15$6.95 2007$5.85$7.15 2008$6.55$7.40 2009$7.25$7.40

3. Raise MI Proposal The Raise MI Coalition was formed in February Goal: Increase MI’s minimum wage from $7.40 to: –$8.10 on Jan. 1, 2015 –$9.10 on Jan. 1, 2016 –$10.10 on Jan. 1, 2017 Indexed to rate of inflation beginning Jan. 1, 2018

4. Raise MI Proposal, cont’d. Tip credit language is more complicated Would increase the tipped employee minimum wage from $2.65 by 85 cents/year until it has caught up with the minimum wage (then eliminated) Schedule (+.85/year): 2014: $2.65 2015: $3.50 2016: $4.35 2017: $5.20 2018: $6.05 2019: $6.90 2020: $7.75 2021: $8.60 2022: $9.45 2023: $10.10 2024: $11.15 2025: $11.83  Eliminated

5. Confusion Regarding Tipped Employees Tipped employees are guaranteed to make the full minimum wage Tipped employers must pay the tipped employee minimum wage (currently $2.65) but if the employees minimum wage plus gratuities does not add up to the full minimum wage (currently $7.40) the employer must pay the difference. –BOTTOM LINE: All tipped employees are guaranteed to make at least $7.40/hour under current law.

6. Timeline Raise MI has until May 28, 2014 to collect 258,088 valid signatures. If they are successful, Board of Canvassers needs to certify the signatures. After being certified, proposal goes to the Michigan Legislature. –40 days to approve or disapprove, cannot be amended If approve, becomes law If disapprove, automatically goes to voters in Nov.

7. National Landscape Raise MI proposal is more extreme than “Obama plan”, which calls for a $10.10 minimum wage by 2017 (versus 2016) –Obama plan increases the tipped credit by 85 cents annually – but caps the tip credit at 70 percent of the regular minimum wage (vs. fully eliminating it) Surrounding states: –OH: $7.95/$3.98– IL : $8.25/$4.95 –IN: $7.25/$2.13– WI: $7.25/$2.33

8. Public Opinion Shows Support Raise Federal Minimum Wage to $10.10/hour –69% favor, 28% oppose –Bloomberg, March 7-9, 2014 Increase MI Minimum Wage to $10/hour –60% yes, 32% no –EPIC-MRA, Feb. 13, 2014 Raise the MI Minimum Wage to $9.50/hour –61% favor, 35% oppose –Public Opinion Strategies, Feb. 9-10 Increase the MI Minimum Wage to $10.10/hour –65% yes, 32% no –Free Press/Lambert Edwards & Assoc., March 9-10, 2014

9. Tough to Beat YearState% Yes 2013New Jersey61% 2006Arizona65.4% 2006Colorado53.3% 2006Missouri76% 2006Montana72.7% 2006Ohio56.2% 2004Florida71.3% 2004Nevada68.4% 2002Oregon51.7% 1996Washington66.1% 1996MissouriFAILED 1996MontanaFAILED 1996Oregon56.8%

10. Questions? Wendy Block Director, Health Policy & Human Resources Michigan Chamber of Commerce 517/371-7678 (office) wblock@michamber.com