Minimum Wage to Increase for Michigan Employees

The state of Michigan has recently passed a law that will gradually increase the minimum wage for non-exempt employees to $12.00 per hour by January 1, 2022.  The state minimum wage applies to all Michigan employers with two or more employees who are 16 years of age or older.

In the past, Michigan has allowed employers to pay tipped employees 38% of the minimum wage, but that percentage will gradually increase to 80% of the minimum wage by January 1, 2022. 

The new minimum wage law and the paid sick leave law (you can read more about that here!) were passed with the intention of amending them after the general election in November 2018. Both were to appear on the ballot this November but now will not as they have already been signed into law. By passing them as laws prior to the election, Congress is now only required a majority vote to amend the laws rather than a vote of three fourths if the initiatives had been passed ont eh ballots in November.

Based on the law as it stands in September 2018, the minimum wage will increase based on the following schedule:

 

January 1, 2019 – $10.00 per hour (48% or $4.80 per hour for tipped employees)

January 1, 2020 – $10.65 per hour (60% or $6.39 per hour for tipped employees)

January 1, 2021 – $11.35 per hour (70% or $7.95 per hour for tipped employees)

January 1, 2022 – $12.00 per hour (80% or $9.60 per hour for tipped employees)

 

Michigan employers should review the wages of their non-exempt employees to be sure that they are in compliance with the increased minimum wages in the coming years.

 

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