Advocacy News – June 12, 2025
As threatened, Michigan may see a voter referendum on Michigan’s new minimum wage law on the November 2026 ballot.
Why it matters: After hearing loud and clear from servers, restaurant operators and customers alike that they opposed the changes pushed by One Fair Wage that were ordered into effect by the Michigan Supreme Court following years of litigation over two 2018 ballot measures, the Michigan Legislature acted in a strongly bipartisan manner this February to pass what is now Public Act 1.
- Under the new law, the minimum wage will increase to $15 per hour by 2027 and the tipped minimum wage will increase from 38% of the full minimum wage to 50% by 2031.
- As has long been Michigan’s requirement, once an employee’s tipped wage and tips are added together, the business must make up the difference if the employee’s wage does not meet or exceed the full minimum wage.
- The so-called “Voters to Stop Pay Cuts” proposal would force businesses to pay the full minimum wage to all employees — with tips added on top. Given how Public Act 1 was structured, the ballot initiative would also slow Michigan’s path to a $15 minimum wage.
- The proposal creates a new round of chaos for an already-vulnerable service industry and will force them to increase prices, lay off employees, automate jobs or make other drastic changes.
What happens next: The group’s referendum wording was filed with the Board of State Canvassers this week. The Canvassers will meet June 27 to consider whether to approve the 100-word petition summary submitted by proponents. If approved, the group will be cleared to collect more 223,009 valid signatures to get the issue on the November 2026 ballot.
- If enough signatures are gathered, the law the Legislature passed in February would be paused until the statewide vote.
The Michigan Chamber will be monitoring this issue closely. For questions, contact Wendy Block.