State minimum wage increase could be passed onto customers
(3/25/2019) - Michigan's minimum wage is set to go up this week, which means the cost could be passed on to you the consumer.
The owner of Uncle Ray's in Fenton says in the short term it's not going to affect them so much, but a month or two down the road it means big money.
Because if they're selling the same price ice cream, but paying employees more, well the money adds up.
It's a busy school night at Fenton's Uncle Ray's Dairyland, and more than a handful of their talented employees are working hard.
Owner Dave Durant says he's willing to pay his employees more than the state minimum because of how much harder they work.
"They've got to be way up here, so we are willing to pay for more of those kinds of people,” Durant said.
Michigan's minimum wage is going up Friday by 20 cents. The state wage is going to go up the next two years. By 2021 the state minimum pay will cap at $9.87.
"It's very unfair for a new employee to come in here at $9.45, who knows nothing. Then we have to tell our people who have been here for two to three years 'hey by the way,' so we have to give them a raise also,” Durant said.
This handmade ice cream shop has more than 30 experienced workers, and they're looking to hire on about ten new people this summer.
"Believe or not on a busy Saturday night or a big Sunday we are going to have 10 of us all across the floor,” Durant said.
Durant says this extra pump in pay could be passed on to customers.
"We've better being doing a lot of ice cream business,” he said.