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:

2020    $9.65/hour

2021    $9.87/hour

2022   $10.10/hour

2023   $10.33/hour

2024    $10.56/hour

2025    $10.80/hour

2026    $11.04/hour

2027    $11.29/hour

2028    $11.54/hour

2029    $11.79/hour

2030    $12.05/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.

Mt Pleasant
619 S Mission St
Mt Pleasant, MI 48858
Phone: (989) 772-4673
Fax: (989) 772-6371
Midland
2927 Manor Dr
Midland, MI 48640
Phone: (989) 832-7833
Fax: (989) 631-1509
Canadian Lakes
10024 Buchanan Rd
Stanwood, MI 49346
Phone: (231) 972-7178
 
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© 2020 by Blystone & Bailey CPAs, PC