The bill amends the Workforce Opportunity Wage Act by updating the minimum wage rates and adjusting the process for future increases. It establishes a new minimum wage schedule, starting at $12.00 per hour on February 21, 2025, and increasing incrementally to $15.00 by January 1, 2029. Additionally, the bill changes the annual adjustment of the minimum wage to begin in January 2030, based on the average annual percentage change in the Consumer Price Index for the preceding five years, with a cap on increases of 3.5%. The bill also modifies the conditions under which these increases can be implemented, specifically adjusting the unemployment rate threshold from 8.5% to 7.5%.

Furthermore, the bill revises provisions related to training wages for new employees under 20 years of age, allowing employers to pay 75% of the general minimum wage for the first 90 days of employment instead of a fixed training wage. It also maintains a provision that prohibits employers from displacing current employees to hire individuals at the training wage, with penalties for violations. Lastly, the bill repeals the improved workforce opportunity wage act, 2018 PA 337, consolidating the wage regulations under the amended act.

Statutes affected:
Substitute (H-2): 408.414, 408.931, 408.945
House Introduced Bill: 408.414, 408.931, 408.945