Michigan Minimum Wage Laws

Michigan Minimum Wage Laws




Minimum wage

Michigan’s current minimum wage is $9.25. Beginning April 2, 2019, the minimum wage will be $9.45

In subsequent years, the minimum wage will increase as follows:

  • January 1, 2020: $9.65
  • January 1, 2021: $9.87
  • January 1, 2022: $10.10
  • January 1, 2023: $10.33
  • January 1, 2024: $10.56
  • January 1, 2025: $10.80
  • January 1, 2026: $11.04
  • January 1, 2027: $11.29
  • January 1, 2028: $11.54
  • January 1, 2029: $11.79
  • January 1, 2030: $12.05

Michigan Senate Bill 1171

Michigan minimum wage laws apply to employers who employ two or more employees over the age of 16 at the same time within a calendar year. MI Law 408.382; MI Law 408.384

Michigan employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.

If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage. In most instances in Michigan, the Michigan minimum wage will apply as it generally guarantees a higher wage rate for employees than federal law.

Youth minimum wage

Michigan minimum wage laws allow employers to pay youth 17 years of age and younger a wage that is 85% of the standard minimum wage. MI Laws 408.414b; MI Wage and Hour Program – Workforce Opportunity Wage Act



Tipped minimum wage

Michigan’s minimum wage for tipped employees is $3.52. It will increase to $3.59 on April 2, 2019.

Michigan’s tipped minimum wage is 38% of its standard minimum wage. In subsequest years it will increase as follows:

  • January 1, 2020: $3.67
  • January 1, 2021: $3.75
  • January 1, 2022: $3.84
  • January 1, 2023: $3.93
  • January 1, 2024: $4.01
  • January 1, 2025: $4.10
  • January 1, 2026: $4.20
  • January 1, 2027: $4.29
  • January 1, 2028: $4.39
  • January 1, 2029: $4.48
  • January 1, 2030: $4.58

Michigan Senate Bill 1171

Michigan defines gratuities as tips or monetary contributions voluntarily paid by customers to employees for services performed and that the employee reports to the employer to comply with the federal insurance contribution act, 26 USC 3101 to 3128. MI Laws 408-414d(2)

An employer may pay an employee the tipped minimum wage if:

  • the employee receives gratuities in the course of employment;
  • the gratuities received by the employee are equal to or greater than the difference between the tipped minimum wage and the standard minimum wage;
  • the gratuities are included on the employee’s declaration for federal insurance contribution act purposes; and
  • the employer notifies the employee of the rules governing tipped employees.



Tip pooling and sharing

Michigan law does not address tip or gratuity pooling or sharing. There is no provision in Michigan law that prohibits an employer from requiring employees from participating in tip or gratuity pooling or sharing agreements. The standards set forth by the federal Fair Labor Standards Act related to tip/gratuity pooling may provide reasonable guidance.



Subminimum wage

Employees with disabilities

Michigan minimum wage laws allow employers to pay employees with disabilities a subminimum wage rate lower than the standard minimum wage if they are covered by section 14(c) of the Fair Labor Standards Act or, if not covered, if they obtain a for a wage deviation certificate from Michigan’s Department of Consumer and Industry Services to do so. MI Laws 408.414c; MI Regs. 408.771-786 The subminimum wage set by the Department of Consumer and Industry Services will be commensurate with the disabled employee’s ability to perform the work for which he or she was hired. MI Regs. 408.771-786



Trainees

Michigan minimum wage laws allow employers to pay 18 and 19 year olds a subminimum training wage of $4.25 an hour for the first 90 days of employment. Employers may not displace any employee to hire an individual at the lower wage rate.

MI Laws 408.414b



Apprentices

Michigan minimum wage laws allow employers to pay apprentices a subminimum wage rate lower than the standard minimum wage. To be able to pay the lower rate, employers must submit an application to do so with Michigan’s Department of Consumer and Industry Services which is responsible for setting a suitable wage rate. MI Laws 408.414c



Learners

Michigan minimum wage laws allow employers to pay learners a subminimum wage rate lower than the standard minimum wage. To be able to pay the lower rate, employers must submit an application with Michigan’s Department of Consumer and Industry Services which is responsible for setting a suitable wage rate. MI Laws 408.414c



Student learners

Michigan minimum wage laws do not allow employers to pay student learners a subminimum wage rate that is less than the standard minimum wage.



Student workers

Michigan minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is less than the standard minimum wage.


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