The U.S. House of Representatives passed a bill Wednesday that would increase minimum wage in the United States for the first time in 10 years.
But the proposed act may have little effect on Michigan businesses because state jurisdiction covers smaller businesses, while the federal covers businesses that gross more than $500,000, said Georgia Harris, with the Michigan Department of Labor and Economic Growth.
Harris added that when the state minimum wage is higher than the national level, it then covers all businesses, including those that gross more than $500,000.
U.S. House Democrats took the opportunity Wednesday to increase the wage by $2.10, passing it by 315-to-116 votes.
The minimum wage bill, or Fair Minimum Wage Act of 2007, is the second bill pushed by the Democratic House since Congress resumed session.
The bill's next step is going to the U.S. Senate and later to President Bush. If passed, it would go into effect 60 days later and increase the national minimum wage to $5.85. A year after the first increase, a second addition would occur to raise the wage to $6.55, followed by a final increase a year later, raising it to $7.25.
Rep. Mike Rogers, R-Mich., voted against the bill. Rogers represents Michigan's 8th District, which includes Ingham County.
As of Oct. 1, 2006, Michigan's minimum wage rate increased to $6.95. It will increase by another 20 cents by July 1. Businesses across the country might have to brace themselves for this new change in the same way some Michigan businesses did last year.
"When Michigan passed (minimum wage), then each store had to deal with it locally," said Ginny Seyferth, a spokeswoman for McDonald's Corp.
Seyferth said Michigan's McDonald's restaurants adjusted the minimum wage in order to accommodate the state hike.
"We've already figured our planning into the 2007 (increase)," Seyferth said. "Minimum wage is often that very first job. We have so many employees, it doesn't affect us as much as a smaller place."
By 2008, Michigan's minimum wage will have increased to $7.40, still ahead of the proposed national wage by 15 cents.
"The store will just have to adapt to the new changes," said Tina Esch, manager of Beaner's Gourmet Coffee, 1331 E. Grand River Ave. "About three months before the last (state) increase, we raised prices about 20 cents a drink."
When the Michigan minimum wage increased last year, Tim Beemer, manager of Cold Stone Creamery, 200 M.A.C. Ave., said the store had to make modifications to its prices.
The store already has prepared for the second Michigan increase to $7.15.
"I could see it definitely affecting other states where they have to go from $5.15 to $7.25," Beemer said. "It's tough because it's such a shock, but it should have been done throughout the years."
States have been hiking the minimum wage to higher than the national $5.15 standard for years.
According to the Committee on Education and Labor for the U.S. House, this is the longest period in U.S. history that there hasn't been a wage increase. Twenty-seven other states, along with the District of Columbia, have higher minimum wages than the national standard.
Esch said higher minimum wages could mean stores will have to adapt and possibly raise prices.
"It's great for our economy and workers to get paid more," she said.
Ashley A. Smith can be reached at smithas7@msu.edu.





