Stages of Michigan’s Minimum Wage Rate Increase

CPAs & Advisors

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In 2014, Governor Snyder signed legislation increasing the Michigan minimum wage rate in stages.

  • The first increase took effect on September 1, 2014, increasing the hourly minimum rate to $8.15 per hour.
  • On January 1, 2016, the minimum wage increases to $8.50 an hour;
  • On January 1, 2017, to $8.90 an hour; and
  • On January 1, 2018, to $9.25 an hour.

Beginning in 2019, the rate will be adjusted annually for inflation, up to a maximum of 3.5 percent per year.

Note that the rate increases are effective for wages earned on or after the indicated date, and not the actual wage payment date.

On January 1, 2016, tipped employee hourly wage rates will also increase to $3.23 an hour. The State of Michigan has a reduced rate available for minors age 16 to 17; however, since it is below the federal minimum wage of $7.25 per hour, that rate takes precedence. A training wage of $7.25 per hour may be paid to employees 16-19 years of age for the first 90 days of their employment.

The full rate schedule is available on the Michigan Department of Licensing and Regulatory Affairs website.

Contact your Yeo & Yeo payroll professional for assistance.

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