Minimum Wage Unlikely to Increase Next Month

Liz Gullett

Dec 18, 2020

The state’s scheduled minimum wage increase is not expected to go into effect on January 1, 2021. Under a 2018 law, the scheduled increases to the minimum wage don’t take effect when the state’s annual unemployment rate for the preceding calendar year is above 8.5%. The annual average rate from January through October is 10.2% and experts find it unlikely that it will decline below the 8.5% threshold this year.

If the unemployed rate does not fall below 8.5% for the year, then effective January 1, 2021:

- Michigan’s minimum wage will remain at $9.65/hour.
- The 85% rate for minors age 16 and 17 remains $8.20/hour.
- Tipped employees rates remains at $3.67/hour.
- The training wage for newly hired employees age 16 and 17 for their first 90 days of employment remains at $4.25/hour.

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

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