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| For Immediate Release |
Contact: Andy Deloney |
| August 31, 2006 |
517/377-3931 |
MRA Victories on Tip Credit, Youth Minimum Wage and EITC
On Wednesday, August 30, state legislative leaders and the Granholm administration came to an agreement on a fix to the overtime issue. In a big win for the MRA, the deal does not include the elimination of the tip credit or even an increase in the $2.65 cash wage. So, that fight is over … for now.
To hundreds of you who wrote letters and emails and made phone calls to your state senator, your work paid off. But be advised, in politics, no issue is ever dead, and no threat ever goes away. We will remain watchful for further attacks on the tip credit.
In addition to the tip credit victory, MRA scored two other wins.
First, there will be a new Michigan minimum wage for youths. Effective October 1, 2006, employees under the age of 18 may be paid a wage that is a minimum of 85 percent of the state minimum wage. In other words, on October 1, when the state minimum wage increases from $5.15 to $6.95, employers may pay employees under the age of 18 a wage that is 85 percent of that, which is $5.91.
Second, there will be a Michigan earned income tax credit. The credit, to be phased in over the next two years, could affect more than 628,000 lower-income taxpayers in the state. The measure will eventually allow an eligible person to claim 20 percent of the credit they now receive under the federal earned income tax credit.
For further information on this development and these issues, please contact the MRA Public Affairs Department at (800) 968-9668.
Founded in 1921, the Michigan Restaurant Association represents more than 4,500 Michigan foodservice establishments. The foodservice industry plays an integral role in Michigan’s economy, employing more than 436,000 people and creating more than $11.3 billion in total annual sales. For more information, call (517) 482-5244.
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