Michigan Minimum wage rises to $8.90 effective Jan. 1, 2017

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The minimum hourly wage is on the rise, increasing to $8.90 from the current $8.50 wage, according to Michigan's Licensing and Regulatory Affairs (LARA).

The wage increase will take effect Jan. 1.  It is part of a gradual 25 percent wage increase under the Public Act 138 of the Workforce Opportunity Wage Act of 2014 that replaced the Michigan Minimum Wage and Overtime Act.

The 85 percent minimum wage remains in effect, which allows employers to pay 85 percent of the minimum hourly wage rate to employees between 16 and 17 years old. This means that the wage for workers who aren’t 18 years old is $7.57.

Chart: Minimum Wage on the Rise

 

For tipped employees

According to LARA, if gratuities do not reach or exceed the hourly wage, employees must provide compensation to equal the hourly wage. The minimum wage for those who receive tips is $3.38.

Chart: What wage increase means for tipped employees

 

With the 25 percent increase in place, the minimum wage is expected to reach $9.25 an hour by 2018.

For more information, call the Wage and Hour Division at 855-646-9243, or visit its website.

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