Minimum wage to increase in Michigan for new year

Posted at 7:32 AM, Dec 29, 2016
and last updated 2016-12-29 08:02:24-05

Another year, another statewide increase for employees currently making minimum wage in our state.

Right now, minimum wage is $8.50 an hour. After January 1, it’ll go up 40 cents to $8.90 an hour.

“We've been able to continue the same level of service with the minimum wage increase that we've seen so far,” said Stuart Vanis, manager at Coral Gables restaurant in East Lansing.

At the Coral Gables restaurant on Grand River Ave. in East Lansing, management has done what it can to keep prices low for customers.

The steady increase in three years has certainly helped make it easier to pay employees more.

“This increase will not have a huge effect I don't think on most businesses,” said Vanis. “We've already had some increases that have already been in place and there’s a few more to go but I think adjustments have already been made.”

Tipped employees currently making minimum wage haven't been left out.

They'll be seeing an increase in pay up to 15 cents an hour along with the normal day to day tips received.

“Even with the minimum wage increase, the biggest problem is prices will still go up,” said Heath Satorius, an employee with the restraint since February. “People will re-adjust their prices so I think more important than minimum wage is to make sure that other people are keeping it from just raising the numbers on both ends.”

With decades in business already, Coral Gables will continue to take things one day at a time.

“You don't want to increase prices unless you don't have to, there is always a lot of factors in increasing prices so it’s hard to say what one factor would increase prices more than another,” said Vanis.

The last increase in minimum wage under the wage act will happen in January of 2018, that's when it goes up to $9.25 an hour.

State law allows employers to pay 85-percent of the minimum wage to workers who are 16 or 17 years old. That amount will be going up to $7.57 an hour on January 1.