Minimum Wage Hike Might Not Add Up - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Minimum Wage Hike Might Not Add Up

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(WLNS) - The battle over raising the minimum wage continues to rage.
As one group is pushing to raise minimum wage to ten dollars and ten cents an hour one lawmaker says that idea might not be as good as it looks on paper.

Putting more money in the pockets of those who rely on tips Senator Rick Jones supports.

But not the 10 dollar and 10 cents an hour plan.

Senator Jones says, "This proposal is very dangerous, it's going to cause restaurants to go out of business,it's going to cost

waiters and waitresses their job"

"Raise Michigan's" plan is to increase pay for those who rely on tips 85 cents every year until they reach minimum wage of ten dollars and ten cents.

Jones says that could crush business.

"I've heard predictions maybe 30 percent could close," said Jones.

So Jones has introduced a bill to set minimum wage at 8.15 an hour and give tip employees and additional ten cents an hour to 2.75.

"His proposal just doesn't go far enough," says Danielle Atkinson.

Danielle Atkinson with "Raise Michigan" says the gradual increase to ten dollars and ten cents for tip employees would be good for the entire state.

"Low wage workers spend their money locally and immediately and that's what we need in our slow economy is more spending," she adds.

"It will absolutely hurt business," says Marjorie Cheadle.

Marjorie Cheadle, the owner of Dagwood's Tavern and Grill in Lansing says that's mean she'd have to layoff employees.

"If i have to pay the smallest person in that system at that rate, what are you going to pay your chef, your manager," she adds.

This owner says the Jones proposal wouldn't amount to much but would be better than setting minimum wage to ten dollars across the board;

Cheadle says, "We all know that you're going to perform well if you're rewarded with your performance, good service is rewarded with a good tip".

But this owner say the higher the minimum wag the less it will mean left at the table.

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