LANSING – State Representative Robert Dean (D-Grand Rapids) today hailed the increase in the minimum wage to $7.40 an hour as a victory for working families.
"Families all across Michigan are struggling to get by in these tough economic times," Dean said. "People who work hard deserve a fair wage. Today's action will help some of our hardest-working residents move away from poverty and onto the path of independence."
In 2006, the Michigan House led the charge for increasing the minimum wage, passing a plan to raise Michigan's minimum wage from $5.15 per hour to $7.40 an hour. The plan took effect in three increments, beginning in October 2006, when the minimum wage increased to $6.95 per hour. On July 1, 2007, it rose again to $7.15, and saw its final increase today to $7.40 per hour.
The higher wage will help nearly 300,000 people in Michigan – many of whom are their families' sole breadwinners – and boost local economies. Additionally, another 482,000 workers who make at least $7.40 an hour are expected to get a spillover pay raise as employers pay more because the floor has been raised, according to the Economic Policy Institute in Washington, D.C. Michigan is now one of 32 states plus the District of Columbia to have a minimum wage higher than the federal rate.
"The rising cost of everything from gas and food to rent and prescription drugs is breaking the backs of many
working families," Dean said. "Today's increase in the minimum wage will give our workers some much-needed relief. While
some businesses may have to adjust in the short-term, raising the minimum wage will create a healthier and more robust
economy that will make Michigan a better place for workers and businesses in the long-run."