Call To Action – $15 Minimum Wage
To no one’s surprise, the Democrats re-introduced a bill that would increase the federal minimum wage from $7.25/hr up to $15/hr over four years. With President Biden in the White House and Democrats holding a majority in the House and Senate, this legislation has the best chance of passing in years.
We continue to argue that increasing the minimum wage, especially during this tumultuous time, would be detrimental for Michigan small businesses.
“The idea that we have elected representatives that would add additional costs at a time when some small businesses are struggling to even stay in business, tells me that they have absolutely no idea what’s happening out in the real world,” Small Business Association of Michigan President and ex-Michigan Lieutenant Governor Brian Calley said.
The Raise the Wage Act of 2021 proposes a number of minimum wage adjustments starting with an increase of $2.25/hr. on the first day the law takes effect, thereby increasing the federal minimum wage to $9.50/hr. After that the federal minimum wage rate will annually increase to the $15/hr. rate in 2025.
- 2022: minimum wage goes to $11.00/hr.
- 2023 increases to $12.50/hr.
- 2024 increases to $14.00/hr.
- 2025 increase to $15.00/hr.
What else does this bill propose?
- It gradually eliminates the $2.13 subminimum wage rate used for youth and disabled workers by 2026.
- It will also phase out the subminimum wage for tipped workers creating a catch-up to the full minimum wage rate by 2027.
- It indexes the federal minimum wage to the median wage growth meaning as the median wage rate increases by way of employer wage increases this will increase the federal minimum wage rate.
If passed, the effects would crush the competitiveness of local small businesses, pushing more activities to large global companies who can more easily shift activities elsewhere.
Please use the button below to assist in reaching out to your Legislators in Washington D.C. to urge them to oppose a $15 minimum wage!