Gov. Snyder signs bill raising minimum wage

Gov. Snyder signs legislation Tuesday night to raise the minimum wage to $9.25 an hour by 2018.

Thousands of Michigan's low-wage workers will soon be earning more.

Governor Rick Snyder signed legislation Tuesday night to gradually increase the minimum wage to $9.25 an hour by 2018.

The current minimum wage is $7.40 .

Lawmakers took all day to reach a compromise. The swift passage comes before a group pushing for $10.10 an hour could turn in its signatures.

â??I believe that people deserve a decent wage so I'm for it, but at the same time, I think the government on the state, federal, and city level also need to offer some tax breaks,â?? said Marjorie Murphy, owner of the Cork on Saginaw, a restaurant and wine bar in Flint.

The legislation Governor Rick Snyder signed will allow the minimum wage to grow with inflation once it hits $9.25 an hour. It also increases the wage for workers who receive tips to 38 percent of the current minimum wage.

However, some people express caution about increasing the minimum wage.

â??I think minimum wage sets an artificial price floor in the labor market and a price floor always causes a surplus and the surplus in the labor market is unemployment,â?? said Owen Nash a student at the University of Michigan Flint who does not support the minimum wage.