KALAMAZOO, MICH. — More than 20 states and Washington D.C. are ringing in the new year with a minimum wage increase.

Among them, Michigan.

In Michigan the wage floor is increasing by 20 cents to $9.65 per hour.

This year’s raise is one in a step of small minimum wage increases that will take place every year this decade. By 2030, Michigan’s minimum wage will increase $12.05 per hour.

Lawmakers in Lansing passed a bill in 2018 ensuring the state’s lowest-paid workers see a yearly increase until 2030.

Kalamazoo Resident Mike Folkers said he supports the increase, but he worries it could impact prices if businesses look to push the costs onto customers.

“I’m for it as long as it doesn’t raise everything and the standards with that and it doesn’t cause the other person that’s making over minimum wage to start suffering from that effect,” he said.

In the U.S., 21 states have a minimum wage equal to or less than the federal minimum wage of $7.25 per hour.

Michigan is in the bottom half of the 30 states and Washington, D.C. which have minimum wages higher than the federal floor.

Among the eight Great Lakes states Michigan’s minimum wage is now third-highest after Minnesota and New York, though Illinois will surpass Michigan in July when it raises its wage floor to $10 per hour.

Jeanne Martin owns a small business and said she has mixed feelings about the increase.

“I think that the minimum wage should be comfortable to support hardworking Americans,” she said.

Martin said some businesses may not be able to afford the increase.

“A lot of those business owners are unable to pay themselves let alone pay somebody else and then pay the benefits, the taxes that come with it,” she said. “There’s a laundry list of things that would hurt a small business.”

Stephen Gowens, owner of Gowens Good Cleaning Services, said he’s in support of raising wages as long as employees have the skills necessary to succeed.

“We just want you to have the skills that’s needed to pay you that price. I think so much that everybody just wants more money, but really If you raise up those things then you have to raise your level of education as well,” he said.

Employment economists tell Newschannel 3 the minimum wage increase shouldn’t have a major impact on businesses if the economy stays strong. If it starts to slow down, however, they say the pennies can start to add up.

Source: WSBT