Michigan Minimum Wage Rising March 29

Michigan's minimum wage is increasing from $9.25 to $9.45 per hour, effective March 29, 2019.

Michigan's minimum wage is increasing from $9.25 to $9.45 per hour, effective March 29, 2019. Overtime requirements remain the same under the Improved Workforce Opportunity Wage Act: Non-exempt employees should be paid 1.5 times their regular rate of pay for hours worked over 40 in a seven-day work week, the state Department of Licensing and Regulatory Affairs (LARA) noted in its news release reminding stakeholders about the change.

An employer may continue to pay minors 16 to 17 years of age 85 percent of the minimum hourly wage rate. On March 29, that rate will increase from $7.86 to $8.03 per hour. There is no change to the training wage of $4.25 per hour that may be paid to newly hired employees, 16 to 19 years of age, for the first 90 days of their employment, the release states.

Public Act 337 of 2018 allows employers to take a tip credit on minimum wage under certain conditions for employees who customarily and regularly receive tips from a guest, patron, or customer for services rendered to that guest, patron, or customer. Tipped employees may be paid 38 percent of the minimum hourly wage rate, provided:

  • Employees are informed in advance of being paid about the tip provisions, and
  • Employees receive tips and they are proven gratuities as indicated by the employee's declaration for Federal Insurance Contribution Act, and
  • The tips received plus the wages paid equal or exceed the minimum hourly wage rate and, if not, the employer pays the shortfall.

Effective March 29, 38 percent of the minimum hourly wage rate will increase from $3.52 to $3.59 per hour.

The state's minimum wage will increase again on Jan. 1, 2020, and Jan. 1, 2021, except that an increase in the minimum hourly wage rate will not take effect if the unemployment rate for the state, as determined by the Bureau of Labor Statistics, is 8.5 percent or higher for the calendar year preceding the calendar year of the scheduled increase. An increase in the minimum hourly wage rate that does not take effect under these conditions will take effect in the first calendar year following a calendar year for which the unemployment rate for the is less than 8.5 percent, according to the release.

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