OAK PARK, Mich. (WXYZ) — Minimum wage is set to rise soon in Michigan.
Right now, Michigan's minimum wage rate is $10.33 but if all goes to plan, it will increase to $12.48 next year.
I visited with a local business owner and talked with more workers who’ve relied on several jobs to support themselves amid inflation to find out just how much of a difference this can make.
"I think it could be helpful, definitely, as long as we don’t get any more inflation behind it,” said Howard Hughes, who supports the minimum wage increase.
Across metro Detroit, workers who’ve had to survive on minimum wage tell me the rate of pay is simply far short of what’s needed to make ends meet.
“Even minimum wage with everything going up, minimum wage isn’t even enough,” said Spud Williams, who supports the increase.
The exact figures for the increase will be finalized on Nov. 1, a recent state Supreme Court ruling says. The new rate takes effect Feb. 21 and will rise each year at the same time to $13.29, $14.16 and 14.97 in 2028.
“Prices probably would go up because at the end of the day, the business margins don’t change,” Alan Brikho said inside Front Page Deli in Oak Park.
Brikho, who owns the deli, says he’s already raised pay well beyond minimum wage to attract the best staff who make his famous 1-pound corned beef sandwiches and more.
“In order to get better talent, better employees, you have to pay a little extra because everyone was competing for that same employee,” Brikho said.
From an economics perspective, professor Michael Greiner shared how much of an impact the increase could have.
“In most cases because we’ve got a relatively tight job market right now, most people are already getting more than what the minimum wage would be requiring anyway. So, if there’s anybody who’s affected, they tend to be, for example, part-time students or temporary workers,” said Greiner, who teaches a Oakland University.
Looking to the future, Michigan is continuing to push to keep its work force, which is a challenge Brikho told me is ongoing given inflation, leaving many scrambling financially.
At Oakland University, I've learned back in June 2023, the board voted to raise pay for undergraduate workers to $15 an hour and $25 an hour for graduate workers. It’s another sign of the need to go beyond minimum wage to retain workers.
