Michigan Minimum Wage Will Be Over Nine Dollars Next By Year

Michigan Minimum Wage Will Be Over Nine Dollars Next By Year

LANSING - Michigan is one of many states that has their own minimum wage laws. As of January 1, 2017 Michigan’s minimum wage increased to $8.90. The next scheduled increase will take place in 2018, increasing Michigan’s minimum wage to $9.25 per hour.

Beginning in January 2019 minimum wage increases will be determined based on the criteria within the “Workforce Opportunity Wage Act,” also known as ACT 138. Jennifer S. Fields, Wage & Hour Division Manager with the Department of Licensing & Regulatory Affairs, explained, “that’s a new act that replaced and repealed the old act. So the new act is what talks about the rates and says and future increase will be tied to the Department Of Treasury and the unemployment rate and the consumer price index.”

Michigan’s minimum wage is higher than the Federal minimum wage, which is $7.25 per hour. Michigan employers have to meet a certain criteria in order to pay employees Federal minimum wage. “That generally applies to employers in Michigan that are doing over half a million dollars per year,” said Fields, ”but again Michigan applies when you have two or more employees age 16 or older. So it’s possible an employer is covered by federal law and by state law. In that case the employer should follow stricter standards, which would typically be Michigan Minimum Wage of $8.90 an hour.” Some employees such as 16 and 17-year-olds, and tipped employees fall under different wage criteria under ACT 138.

If the Michigan Department of Treasury determines an increase in January 2019, the Wage and Hour Division is required to update their website by February 1st, of that year. The new minimum wage would then be in effect April 1st of that year.


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