In a few weeks, the hourly wage rate in Michigan will increase, as set by the Improved Workforce Opportunity Wage Act of 2018. Currently, Michigan’s rate is $9.87 per hour and $3.75 for tipped employees.

Effective January 1, 2023:

• • The minimum hourly wage will increase to $10.10 per hour
  • The 85% rate for minors aged 16 and 17 will increase to $8.59 per hour
  • The tipped employee rate of hourly pay increases to $3.84 per hour
  • The training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged

However, there is pending litigation that might affect the increase. In 2018, a petition initiative sought to raise Michigan’s minimum wage to $12 an hour by 2022 and raise the minimum wage for tipped workers to 80% of the standard minimum wage in 2022, 90% in 2023 and ultimately match it in 2024. Prior to it being placed on the ballot, the legislature adopted, then amended it, putting in lower wage thresholds that increased the minimum wage to $12.05 by 2030 instead of 2022 and kept the tipped minimum wage at 38% of the standard one. As a result, the state’s current hourly minimum wage is $9.87 and $3.75 for workers who are expected to make up the difference in tips. The legislature’s use of adopting and amending has been challenged in court as unconstitutional. On July 19, 2022, the Court of Claims issued a decision that agreed with that challenge and voided the amended versions in favor of their original, unamended versions. On July 29, 2022, the Court of Claims entered an order staying the effect of this decision until February 19, 2023, to give employers and the relevant state agencies time to accommodate the changes required by the ruling. This ruling has been appealed. Pending final resolution of the appeal, and lifting of the stay, under the potential implementation of the originally adopted petition, the minimum wage rate for 2023 would be $13.03 and $11.73 for tipped employees.

For more information, please visit Michigan.gov/WageHour.

Michigan Legislative Consultants is a bipartisan lobbying firm based in Lansing, Michigan. Our team of lobbyists and procurement specialists provide a wide range of services for some of the most respected companies in America. For more on MLC, visit www.mlcmi.com or connect with us on LinkedIn and Twitter.