UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase HRMS Unit Liaison Meeting August 18, 2006

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Michigan Minimum Wage Discussion Agenda Legislative Change in Minimum Wage Impact at UM Targeted Focus – Compliance – –Batch process for implementing minimum wage increase – Sept 18 Important Dates Questions –

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Legislative Change in Minimum Wage Federal legislation - minimum wage at $5.15/hour New Michigan Minimum Wage Law – –Three year roll in for state of Michigan employers Oct 1, 2006 $6.95 July 1, 2007 $7.15 July 1, 2008 $7.40 Now, first time Michigan min wage is greater than the federal minimum wage

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Impact of State Min Wage Increase at UM UM minimum wage/salary guideline – –Regular employees $20,500 or $9.86/hour Impacted groups at UM? – –Temporary and student employees earning less than $6.95/hour – –Potential impact – for outside sales and commissioned employees Departments impacted by 3 year-roll in of new min rates – incorporate into business practices

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Targeted Focus: Compliance Need to meet compliance by Oct 1, $6.95 effective - start of bi-weekly pay period: 9/24 First pay date in system with new min rate 10/13 Departments will need to – –update business communications referencing old rate (postings, posters, handouts) – –Communicate with temp employees about new min rate

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Targeted Focus: Compliance Using batch load to process change in min rate Limited in scope to appointments already in system by 9/15 Adjust rates below $6.95 for temp appointments No changes will be made to temps earning a rate above $6.95 Loading batch on 9/18 Encourage departments to bring in new hires in September at new minimum rate to avoid confusion between old /new rate

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Important Dates: An Overview Sept 15 - cutoff date end of day Friday – if appointment is in system and the rate of pay is below $6.95, the batch load will process the min wage increase electronically Sept 18 - Batch upload to MAIS for processing Sept 19 – batch load report available for department – will need to provide department ID and mail request for report to Sept 24 – start of pay period with new rates Sept 29 – last pay date with current rates Oct 13 - first pay date with $6.95 min rates

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Questions?? If I have a need to adjust rates now that are not below the minimum in order to maintain a differential between temporary employees how can I do this? – –Follow current business practice using temporary paper processing – –Or If you are interested in working on a batch load process to change rates for your unit - contact MAIS help desk. You will be asked to provide a file to MAIS, and they will work with you on uploading this information much like the merit program.

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Questions?? Can I get information about my employees on the batch up load? – –Request to – –Provide departmental ID with request – –Worksheet available on 9/19 Can I use the new minimum rate prior to Sept 24 effective date? – –Yes, you can start using the minimum rate now. All departments must be compliant no later than 9/24 – –Encourage units to bring in new hires in September at new rate

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase And for Future Years… Planning aheadPlanning ahead –Next Minimum Wage increase dates July 1, 2007 increase to $7.15July 1, 2007 increase to $7.15 July 1, 2008 increase to $7.40July 1, 2008 increase to $7.40

UL Presentation Aug 18, 2006 Michigan Minimum Wage Increase Thank You! If you need any additional help or feedback for future min wage adjustments Contact us Steve Drews Jennifer Mitts Etta MacDonagh-Dumler