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Reminder: Minimum Wage in Michigan Increasing in January

On January 1, 2017, the minimum wage rate in Michigan will increase from $8.50 per hour to $8.90 per hour. This increase marks the third out of four scheduled increases which began in 2014. To recap, the specific dates for each increase were:

September 1, 2014:

$8.15 per hour

January 1, 2016:

$8.50 per hour

January 1, 2017:

$8.90 per hour

January 1, 2018:

$9.25 per hour

January 1, 2019
(and each January thereafter):
 

Rate to rise with inflation rate for Midwestern states, but not
more than 3.5% per year, and no increase if the rate of
unemployment meets or exceeds 8.5% in the prior year

michigan money

Michigan's scheduled rise in the hourly minimum wage rate affects tipped employees as well. Beginning on January 1, 2017, the minimum wage rate for tipped employees will increase from $3.23 per hour to $3.38 per hour. This leaves only one scheduled increase remaining, which occurs on January 1, 2018, when the minimum wage rate for tipped employees rises to $3.52 per hour 

Michigan employers must be aware that a tipped employee's hourly minimum wage rate plus tips must meet or exceed the state minimum wage rate of $8.90 per hour in January 2017 and $9.25 per hour in January 2018. If a tipped employee's hourly wage rate plus tips does not meet or exceed the required state minimum wage rate for each year respectively, the employer is required to make up any shortfall. 

© 2020 Varnum LLPNational Law Review, Volume VI, Number 340

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About this Author

Elizabeth Wells Skaggs, labor and employment attorney, Varnum
Partner

Beth is a partner in the labor and employment practice group, focusing employment issues and litigation. She has counseled business clients on a variety of matters affecting the workplace, including effective employee handbooks and policies, disciplinary and dispute resolution procedures, discrimination issues, disability accommodation, wage-hour matters, family medical leave, harassment prevention and litigation avoidance.  When litigation is unavoidable, Beth has significant experience representing employers under the numerous state and federal statutes that govern the...

616/336-6620
Tiffany Snow, Varnum Law Firm, Labor and Employment Attorney Detroit MI
Associate

Tiffany is a member of the firm's Labor and Employment Team. She has a depth of experience in employment matters, having served as a senior account manager at a regional staffing firm for many years prior to obtaining her law degree. Her legal education includes a litigation and estate planning focus.

Practice Areas

Education

Western Michigan University Thomas M. Cooley Law School
Auburn Hills, Michigan
J.D., cum laude, 2015

Michigan State University
East Lansing, Michigan
B.S., Merchandise Management, 2004

313-481-7328