Minimum wage to increase to $9.25 for Michigan

MICHIGAN — Effective January 1, 2018, the minimum hourly wage will increase to $9.25 an hour up from $8.90, according to a press release from the state bureau of Legislation and Regulatory Affairs (LARA). This will be the final scheduled increase provided for in Public Act 138, the Workforce Opportunity Wage Act (WOWA) of 2014. Any future adjustments after January 2018 shall not exceed 3.5 percent and will be established by the State Treasurer based on the unemployment rate and the Consumer Price Index.

P.A. 138 (WOWA) took effect on May 27, 2014, replacing the Michigan Minimum Wage and Overtime Act (Act 154). WOWA is enforced by the Wage and Hour Division – an agency within the Bureau of Employment Relations (BER). The law generally applies to Michigan employers with two or more employees, age 16 and older.

The first minimum wage increase went into effect September 1, 2014, raising rates to $8.15 per hour. On January 1, 2016, minimum wage rose to $8.50 per hour and to $8.90 on January 1 of this year.

WOWA also allows an employer in Michigan to pay 85 percent of the minimum wage hourly rate of employees aged 16 and 17. That rate will increase to $7.86 on January 1, 2018, up from $7.57. Employers covered by both state and federal minimum wage law must pay the higher of the two rates.

The training wage will remain at $4.25 an hour for newly hired employees aged 16 to 19 for the first 90 days of employment.

WOWA allows employers to take a tip credit on the state minimum wage rate under certain conditions for employees who customarily and regularly receive tips. Employees who are tipped may be paid 38% of Michigan’s minimum wage.

For more details, visit the state’s Wage and Hour Division website at visiting the at Information on federal minimum wage may be obtained by contacting the U. S. Department of Labor at 866-487-9243.

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