By: Karen L. Piper
Michigan’s minimum wage will be increasing on January 1, 2018. The current minimum wage is $8.90 per hour. Effective January 1, 2018, it will increase to $9.25 per hour.
Michigan has a lower minimum wage for younger employees. Employees aged 16 and 17 can be paid 85% of the applicable minimum wage, as long as that wage rate is equal to or greater than the federal minimum wage of $7.25. (Federal minimum wage is not increasing.) Effective January 1, 2018, Michigan’s youth minimum wage will increase from $7.57 per hour to $7.86 per hour.
Michigan also has a lower minimum wage for employees who regularly are tipped for their services by customers. The employees’ average hourly tips as reported by their employer for FICA (Federal Insurance Contribution Act) must equal or exceed the difference between the tipped wage and Michigan’s minimum wage. As of January 1, 2018, the new rate for tipped employees will increase from $3.38 per hour to $3.52 per hour, as long as their employer reports that tips received average at least $5.73 per hour.
Now is a good time to review employees’ wages to ensure that employees are paid the rate required by law. Questions regarding the applicable rate can be directed to experienced employment counsel, such as the author.
This article was written by Karen L. Piper, who is Secretary of the Board of Detroit SHRM, a member of the Legal Affairs Committee, and a Member of Bodman PLC, which represents employers, only, in Workplace Law. Ms. Piper can be reached at Bodman’s Troy office at (248) 743-6025 or firstname.lastname@example.org. For further information, go to: http://www.bodmanlaw.com/attorneys/karen-l-piper.
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 are included in the re-post of the article. December 2017.