The minimum wage in Michigan is set to increase to $12.48 on Friday, Feb. 21, as per a ruling passed by the state’s Supreme Court on July 31, 2024. The ruling adjusted previously passed legislation to better account for inflation and the passage of time.
Pay adjustments for Michigan employees have sparked disputes among lawmakers and questions from state residents. As legislative ground for the future of Michigan’s minimum wage continues to shake, employers within Grand Valley State University prepare to acclimate to the new requirements.
A 2024 decision by Michigan government officials raised the minimum wage from $10.33 to $10.56 on Jan. 1, 2025. The Feb. 21 increase is set to add another $1.92 per hour.
These changes fall in line with the Michigan Supreme Court’s efforts toward ‘tip credit’ erasure. The minimum wage for tipped individuals is also set to increase to $5.99 an hour on Feb. 21. The corresponding changes to tipped employees’ base pay is set to incrementally increase until workers eventually receive base pay at the rate of minimum wage after 2030.
Both initiatives have stirred controversy from politicians and lawmakers, which prompted Michigan Gov. Gretchen Whitmer to call for a prompt bipartisan solution or continue to push the plan’s rollout into the summer.
The Michigan Senate also just moved forward with a bill that aims to implement a minimum wage of $15.00 per hour by 2027, which awaits House approval.
An additional policy change referred to as the Earned Sick Time Act was decided upon over summer 2024, and will also roll out on Feb. 21. The legislation details new benefits that could accommodate low income workers by mandating a certain amount of paid sick leave based on the number of people employed by a business.
According to an article published by Michigan Advance, Michigan businesses would be required to give employees 40 hours of paid sick leave and 32 hours of unpaid sick leave in one year if an employer has fewer than 10 workers.
If an employer has 10 or more employees, the business would have to give employees 72 hours of paid sick leave.
The Michigan House and Senate have both individually proposed alternative legislation to trim back these changes. The act faces pressure, as it’s expected to take effect in a matter of days.
At GVSU, most hourly positions on campus will be affected by the wage increase. The average wage rate for student employees ranged from $10.56 to $12.01 during the Fall 2024 semester. The University’s pay scale is set to implement the mandated raise in minimum wage once it’s been enacted.
GVSU Mary Idema Pew Library employees Miranda Willer and Julianne Solack have both been student employees for multiple years. Despite feeling positive about the minimum wage boost, both Willer and Solack identified additional pressing issues in campus employment they feel should be addressed.
“It’s important that (the government) protects having a minimum (wage), but (on campus, we need) more jobs (and) more hours,” Solack said.
Willer took a broader perspective on the benefits of increased wages. They said the raise will benefit not only Michigan students, but also the international student population, as they “can only work on campus.”
Willer said they feel certain on-campus jobs have fair wages, but that other GVSU workplaces do not.
“Here (at the library), I’ve been pretty happy with (pay),” Willer said. “(However), with campus dining, not at all.”
Solack felt similarly in regard to campus dining employees because “they do more work and get paid less.”
“I think (minimum wage) should continue to rise,” Solack said. “Especially if you’re there (at a certain workplace) for more time, I think you should get raises not just based on performance, (but the hours spent) working there.”
Tatum Nichols is a student employee in the University’s Student Employment Office. Nichols finds the minimum wage increase to be a generous step in the right direction.
“Do I think that (the increase is) enough for students to live off of and pay rent and everything for school? Not necessarily,” Nichols stated. “But, I do think we’re getting to a point where people are starting to recognize that students do need to be paid more to survive.”
To Nichols’ point, research shows lower income households within the Midwest particularly suffer as a result of America’s economic crisis. The National College Attainment Network (NCAN) named the Midwest a “particularly unaffordable region.” This highlights the notion that living in Michigan can be expensive for many students.
“On average, Michigan public bachelor’s-granting institutions were less affordable than those nationally, with an average affordability gap of $2,445, compared to $1,690,” noted a NCAN article in December.
Many Michigan government officials acknowledged this gap in some capacity when the Michigan Achievement Scholarship was signed into law.
As a way to further combat financial hardships facing young adults, the scholarship opportunity is a renewable grant for eligible Michigan residents enrolled at public or private institutions. These grants averaged around $4,000 awarded to just under 30,000 students in the state over the 2023-2024 academic year.
The bills relating to tipped workers and sick leave await approval from the House floor before they can go into effect. Many Michigan workers do not feel confident regarding statewide policy development, especially since lawmakers have already passed bills to slow the wage increase. With the Michigan Supreme Court’s legislation almost in motion, the Feb. 21 rollout looms large.
