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New Minimum Wage Law in Michigan

Employment Law

The Michigan legislature has amended the Minimum Wage Law in Michigan. The Legislature adopted 2018 PA 368 on December 4, 2018, and Governor Snyder signed the legislation into law on December 13, 2018. The bill will take effect in March 2019. Under the new law, the minimum wage employers will be required to pay their employees will increase each year until 2030, as long as the unemployment rate in Michigan does not rise above 8.5% during any preceding year. Assuming unemployment stays beneath the 8.5% mark, the minimum wage increases will be the following:

End of March, 2019: $9.45/hour
January 1, 2020: $9.65/hour
January 1, 2021: $9.87/hour
January 1, 2022: $10.10/hour
January 1, 2023: $10.33/hour
January 1, 2024: $10.56/hour
January 1, 2025: $10.80/hour
January 1, 2026: $11.04/hour
January 1, 2027: $11.29/hour
January 1, 2028: $11.54/hour
January 1, 2029: $11.79/hour
January 1, 2030: $12.05/hour

No further adjustments will be made based on inflation.

The new law does not change the language of the minimum wage requirements for employees in the service industry who receive tips. As under the old law, employees in the service industry are required to make at least 38% of the regular minimum wage requirement, plus tips. Currently, this amount is equal to $3.52, but by 2030 it will be equal to $4.58. However, if the employee does not make at least the normal minimum wage amount with both their wage and tips, the employer must pay the employee the difference.

If you or your business have an issue with employee compensation, contact Shinners & Cook, P.C. today.