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2008 Policy Book

#57 WAGES AND COMPENSATION

Although most farm workers are paid above the minimum wage level, it does serve as a floor for all wage rates. The state minimum wage and piecework rates should not exceed the federal minimum wage.

We recommend:

• Agriculture remain exempt from overtime wage payments.
• Agricultural piecework rates as a method of payment to allow for the many variable situations found in agricultural employment. Piecework rates enable skilled agricultural workers to earn income above the average and/or minimum hourly wage.
• Any increases in minimum wages be tied directly to increases of all wage-based employer thresholds, such as unemployment compensation insurance, frequency of withholdings, and frequency of deposits.
• Growers using the H2A program are required to pay an Adverse Effect Wage Rate (AEWR) which is based on all agricultural wages. The AEWR should be based on local prevailing wage rate for the crop or production practice being done.

Economic development initiatives are important to the future of Michigan agriculture. We oppose any attempts to mandate union wage scales in economic development projects involving agriculture.

We oppose Workers' Compensation rules that mandate fringe benefits (e.g., housing, health insurance) being included in the base-rate premium.

We oppose all local units of government setting a minimum wage rate.