Michigan’s Minimum Wage Rate Is About To Jump Again!

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By:  Claudia D. Orr 

 

Get ready!  Here it comes…. Effective January 1, 2016, the minimum wage rate in Michigan is jumping by 35 cents to $8.50/hour!  There are some exceptions (e.g., for tipped employees, an initial training rate for young workers, for minors, etc.), but most everyone will be eligible for the new rate.

Since 2014, Michigan’s Workforce Opportunity Wage Act has provided a higher minimum wage rate than the federal rate which has been at $7.25 since July 24, 2009.  Note that there are additional increases scheduled to occur under Michigan law in future years:

Effective Date Minimum Hourly Wage Rate  Tipped Employee Rate Ages 16-17 (85% of Minimum Hourly Wage)
Current $8.15 $3.10 $7.25
 January 1, 2016 $8.50 $3.23 $7.25
 January 1, 2017 $8.90 $3.38 $7.57
 January 1, 2018 $9.25 $3.52 $7.86

The increases above may be usurped because, as we all know, there has been a big push to raise the rates as high as $15/hour. So, stay tuned.

This article was written by Claudia D. Orr, who is Chair of the Legal Affairs Committee of Detroit SHRM, and an experienced labor/employment attorney at the Detroit office of the law firm Plunkett Cooney (a full service law firm and resource partner of Detroit SHRM).  She can be reached at corr@plunkettcooney.com or at (313) 983-4863. 

Detroit SHRM encourages members to share these articles with others, inside and outside their organization, as long as its name and logo, and the author’s information, is included in the re-post of the article. December 2015.