News & Insights

Michigan Employers – Are You Paying the New Minimum Wage?
January 5, 2016
by Brett Hummer

 

South Bend / Mishawaka, IN – In 2014 the State of Michigan passed new legislation (the Workforce Opportunity Wage Act) that incrementally increases employees’ minimum wage from $7.40 to $9.25 per hour by January 1, 2018.  With the calendar flip to 2016, the minimum hourly wage for Michigan workers is now $8.50 per hour.  It was previously $8.15 per hour.  This is the second increase in the past year and a half since the 2014 law went into effect, and it will increase again on January 1, 2017.

Also going up in 2016 is the minimum wage for tipped employees in Michigan.  Michigan employers who have tipped employees in their workforces must now pay these individuals at least $3.23 per hour compared to the previous minimum wage of $3.10.  Despite these hourly minimums, employers need to make sure tipped employees are earning a total of at least $8.50 per hour taking into account both the employee’s regular wages and earned gratuities.  The employer is required to pay the tipped employee any shortfall in the event the tips plus the minimum hourly rate do not equal or surpass the minimum hourly wage.

The Wage and Hour Program under the Michigan Occupational Safety and Health Administration (MIOSHA) enforces Michigan’s minimum wage law.

Michigan employers with questions concerning the Wage Opportunity Act and wage and hour compliance should always consult with experienced legal counsel.  The content of this article is for information purposes only, and neither contains nor should be considered legal advice.

 

 

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