Students, faculty weigh in on increased benefits, concerns
The minimum wage in Michigan will increase from $10.56 to $12.48, representing the largest single increase in state history (not accounting for inflation).
Skye Bawol | The Washtenaw Voice
Henry Sincic
Contributor
On Feb. 21, the minimum wage in Michigan will increase from $10.56 to $12.48, representing the largest single increase in state history (not accounting for inflation).
The increase, the first in a series of four-step increases in the minimum wage culminating in a rate of $14.97 in Feb. 2028, is in accordance with the recent Michigan Supreme Court reinstating of the Improved Workforce Opportunity Wage Act (IWOWA), which passed in 2018.
The act, which was enacted in Nov. 2018 as the result of a petition signed by over 200,000 Michigan voters, became the subject of controversy when state legislators amended it by deferring the planned minimum wage changes to 2030.
“There was the ballot proposal, and then they basically changed the law after the ballot proposal passed, and that went to the courts,” said Gregg Heidebrink, a WCC professor of economics. In July, the Court of Claims decided in favor of an action brought against the attorney general by multiple Michigan nonprofits who alleged that the “adopt and amend” policy was unconstitutional.
Students at WCC, when surveyed, were almost universally in favor of the increase in the minimum wage.
“Personally, from the perspective of looking for a job, I’m of course happy to see that the minimum wage has increased,” said Elvy Yin, a 28-year-old fine and performing Arts major, “I think that’s beneficial for the job seekers.
While most students supported the increase, some expressed concerns about what effect the changes might have on the economy.
“It (the increase) is nice in the short term, but I’m worried about how it’s going to affect the economy,” said Mary McLroy, a 25-year-old student pursuing an environmental science degree, who currently works at a supermarket. “I think it’s gonna pass a cost out to the customers, and it’s gonna drive the cost of living up … I think if the minimum wage increases, everyone’s wages should be increased.”
IWOWA will also serve to gradually increase the minimum wage of tipped employees in Michigan, culminating in those employees making 100% of the minimum hourly wage by February 21, 2030. Students asked about the rise in tipped employees’ wages responded overwhelmingly in the positive.
“I think that (the tipped employees’ wage raise) is very good due to the way that tips are usually processed,” Caden Hoffman, an 18-year-old mechatronics engineering student said. “Even if you’re giving a tipped employee a 25% tip, they don’t usually see that full 25%,” Hoffman said, “Sometimes they also have to distribute those tips out to people that work in the back.”
While some outlets, like the Michigan Restaurant & Lodging Association, have advocated against the recent changes, citing the vulnerability of the industry to sudden wage hikes and the elimination of the tip credit as something that workers are against, others are more optimistic about the changes.
“We do it (tipping) for all sorts of reasons,” Heidebrink said. “I don’t think the fact that the wage rate is going up is likely to significantly change those tips, so I don’t think they (tipped employees) are going to be offset by lost tips there.”
