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:

Minimum Hourly Wage Rate 

2020    $9.65/hour

2021    $9.87/hour

2022   $10.10/hour

2023   $10.33/hour

2028    $11.54/hour

2029    $11.79/hour

2030    $12.05/hour

2024    $10.56/hour

2025    $10.80/hour

2026    $11.04/hour

2027    $11.29/hour

Tipped Employees

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.

Midland
2927 Manor Dr
Midland, MI 48640
Phone: (989) 832-7833
Fax: (989) 631-1509
Mt Pleasant
619 S Mission St
Mt Pleasant, MI 48858
Phone: (989) 772-4673
Fax: (989) 772-6371
Canadian Lakes
10024 Buchanan Rd
Stanwood, MI 49346
Phone: (231) 972-7178
 
© 2019 by Blystone & Bailey CPAs, PC