Michigan’s minimum wage increased on January 1, 2016 to $8.50 per hour for workers 18 years or older, and to $3.23 per hour for tipped employees. This increase is part of Public Act 138, the Workforce Opportunity Wage Act, passed May 27, 2014, which gradually increases Michigan’s minimum wage to $9.25 per hour in 2018.
The table below outlines the requirements for 2016 through 2018:
Minimum Hourly Wage Rate
|Tipped Employee Hourly Wage||85% Minimum Hourly Wage*|
|January 1, 2016||$8.50||$3.23||$7.25|
|January 1, 2017||$8.90||$3.38||$7.57|
|January 1, 2018||$9.25||$3.52||$7.86|
Tipped employees may be paid 38% of the minimum hourly wage rate as long as their wage plus gratuities meets or exceeds the minimum hourly rate. If it does not, the employer must pay the shortfall to the employee.
Workers 16-17 years of age may be paid 85% of the minimum hourly wage rate, but not less than the federal minimum wage, which currently stands at $7.25/hour.*
January 2019 and annually thereafter, the state treasurer will determine the minimum wage adjustment based on inflation, but will not exceed 3.5%. These rates will be posted February 1 on the LARA website and would take effect on April 1 of each year. There will be no adjustment if Michigan’s unemployment rate was 8.5% or more in the previous year.
By: Beth Thomas