The New Year is officially here and with it comes some new Michigan laws. The first of the year is often when new regulations go into effect, so it’s best to be aware of the changes so you can adjust, if need be, and stay within the law. Hopefully this information will come in handy.
Two major Michigan laws are going into effect on Jan. 1. One has to do with the Michigan minimum wage, and the other surrounds auto insurance.
On Jan. 1, 2022, a minimum wage increase will go into effect. There’s been lots of talk about the minimum wage in not just Michigan but nationally, and Michigan is one of 22 states upping the rate this year. Michigan’s new base minimum wage is now $9.87, up $0.22 from the previous wage of $9.65 per hour. Tipped hourly employees will also see an increase, with their hourly rate going up to $3.75, $0.12 than their previous wage. For younger workers ages 16 to 17 in Michigan, who make 85% rate, their hourly wage will go up to $8.39.
The other law has to do with Michigan’s auto insurance. If your insurance has lapsed, you have to renew your auto insurance before Jan. 1, 2022, (too late!) or begin collecting penalties. The change is tied to the auto insurance reform legislation of 2019. According to Governor Gretchen Whitmer’s office, roughly $1 billion in auto insurance savings have resulted from the legislation.