Minimum Hourly Wage Rate
Michigan's Minimum Wage Increase
Michigan’s Minimum Wage is set to increase to $12.05 per hour by January 1, 2030. The current rate, effective March 2019, is $9.45 per hour. Increases through 2030 are set to be effective each January 1 as follows:
Public Act 337 of 2018 allows employers to take a tip credit on minimum wage under certain conditions for employees who customarily and regularly receive tips from a guest, patron or customer for services rendered to that guest, patron, or customer.
Tipped employees may be paid 38% of the minimum hourly wage rate, provided:
Employees are informed in advance of being paid about the tip provisions.
Employees receive tips and they are proven gratuities as indicated by the employee's declaration for Federal Insurance Contribution Act.
The tips received plus the wages paid equals or exceeds the minimum hourly wage rate and, if not, the employer pays the shortfall.
Effective January 1, 2020, 38% of the minimum hourly wage rate will increase from $3.59 to $3.67 per hour.
Employees 16 to 19 Years of Age
An employer may continue to pay minors 16 to 17 years of age 85% of the minimum hourly wage rate. January 1, 2020, that rate will increase from $8.03 to $8.20 per hour. There is no change to the training wage of $4.25 per hour that may be paid to newly hired employees, 16 to 19 years of age, for the first 90 days of their employment.