The bill amends the Improved Workforce Opportunity Wage Act by updating the minimum hourly wage rates and the process for adjusting these rates based on inflation. The new minimum wage schedule establishes specific rates for each year from 2025 to 2030, starting at $12.48 in 2025 and increasing to $20.00 by 2030. Additionally, the bill stipulates that beginning in 2030, the state treasurer will calculate an adjusted minimum wage rate every October, based on the 12-month percentage increase in the consumer price index for urban wage earners and clerical workers. The adjusted rate will be published by November 1 and will take effect on January 1 of the following year.

Furthermore, the bill includes provisions that prevent an increase in the minimum wage if the unemployment rate in Michigan is 8.5% or greater for the year preceding the increase. The language of the bill also updates references to the Bureau of Labor Statistics and clarifies the timing and publication of the adjusted minimum wage rates. Overall, the bill aims to ensure that minimum wage rates keep pace with inflation while also considering economic conditions in the state.

Statutes affected:
House Introduced Bill: 408.934