Michigan Will Soon Have a New Minimum Wage
If you work in Michigan on the current minimum wage, then you’re set to get a raise next year, and that raise is coming over two separate increases. There’s the national minimum wage, which is the federal minimum wage for covered nonexempt employees, and that’s $7.25 per hour as of 2024. On top of that, many states also have minimum wage laws, and that’s where these Michigan minimum wage increases come into play.
“In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages,” the federal government notes. So, if you or someone you know is living on minimum wage, here’s what to know about the increases on the way.
Michigan Minimum Wage Update
Michigan’s minimum wage will go up by more than two dollars in 2025, and that will take place over two separate increases. One of those increases will be in January, and the other will take place in February.
Starting Jan. 1, 2025, the minimum wage will go up from $10.33 to $10.56 per hour. Then, starting Feb. 21, 2025, the minimum wage will go up again to $12.48 per hour. For worker who get paid with tips, their hourly pay will go from $3.93 to $4.01 an hour in January and then up to $5.99 in February.
In July, the Michigan Supreme Court ruled in a case over the move to adopt and amend a ballot initiative that proposed raising the minimum wage, which overturned a lower court’s decision. After that ruling, Michigan’s Department of Labor and Economic Opportunity announced the minimum wage rate increase schedule for 2025.
“Michigan’s Minimum Wage will increase twice in 2025 – first increasing on Jan. 1, 2025, following the usual rate increase schedule, and again on Feb. 21, 2025, in accordance with the recent Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act (IWOWA), PA 337 of 2018, schedule,” they noted.
The schedule is as follows for minimum wage employees:
Feb. 21, 2025 – $12.48
Feb. 21, 2026 – $13.29
Feb. 21, 2027 – $14.16
Feb. 21, 2028 – $14.97
The schedule is as follows for tipped employees:
Feb. 21, 2025 – $5.99
Feb. 21, 2026 – $7.97
Feb. 21, 2027 – $9.91
Feb. 21, 2028 – $11.98
Michigan’s Department of Labor and Economic Opportunity adds that, “Every Oct. beginning in 2028, the state treasurer will calculate an adjusted minimum wage rate, increasing the minimum wage by the rate of inflation. The adjusted minimum wage rate is published by Nov. 1 of the year it is calculated and comes effective beginning Feb. 21 of the succeeding year.”
