Trade Law in Michigan. Essay
Trade Law in Michigan., 449 words essay example
Essay Topic: trade, law
Michigan enacted a law that gradually increases the minimum wage requirement from $7.40 to $9.25 per hour by January 2018. This law was put in place in May of 2014. On January 1st of this year, the minimum hourly wage for employees increased from $8.15 to $8.50 per hour. Not only did that increase, but also the minimum wage for tipped employees increased from $3.10 to $3.23 per hour. A tipped employee must earn at least $8.50 per hour including gratuities and normal wages being taken into consideration. If gratuities on top of the tipped employee minimum hourly wage rate don't equal or surpass the minimum hourly wage, then the employer pays any shortfall to the employee (Calfield, 2016).
Successful May 27, 2014, Public Act 138 of 2014, the Workforce Opportunity Wage Act, revoked and supplanted Public Act 154 of 1964, as changed, the Minimum Wage Law.
Tipped representatives might be paid $2.65 every hour May 27, 2014 through August 31, 2014 powerful September 1, 2014, tipped workers might be paid 38% of the Section 4 Minimum Hourly Wage Rate. In the event that the tips in addition to the tipped worker least time-based compensation rate under subsection 4d don't equivalent or surpass the base time-based compensation generally settled under segment 4, the business pays any setback to the representative. A preparation compensation of $4.25 every hour might be paid to representatives 16-19 years old for the initial 90 days of their job. Minors 16-17 years old might be paid 85% of the base time-based compensation rate.
*The state 85% rate of $6.29 every hour from 5/27/2014 through 8/31/2014, and the $6.93 from 9/1/2014 through 1/1/2016, and the $7.23 from 1/1/2016 through 1/1/2017 is lower than the government the lowest pay permitted by law of $7.25. Segment 10(1) of Public Act 138 of 2014, as corrected, states ". . . This demonstration does not have any significant bearing to a business that is liable to the lowest pay permitted by law procurements of the reasonable work benchmarks demonstration of 1938, 29 USC 201 to 219, unless those government the lowest pay permitted by law procurements would bring about a lower least time-based compensation than gave in this demonstration.."
With every list of positives, there are also negatives, which include price increase, layoffs, and competition will intensify. Minimum wage increases can lead to layoffs because if businesses have a tight budget then they can no longer pay for the same number of employees at this new higher rate. It forces them to make cuts and lay people off so they can remain within their budget. While some employees are making a little more money, others will be left jobless. Employers might raise prices of their product in order to generate enough income to support their more highly paid minimum wage employees, which could ultimately create a ripple effect for other shops and industries, resulting in a slightly higher cost of living, resulting in another push to raise minimum wage again