Michigan’s Minimum Wage is About to Increase on New Year’s Day
There's good news for anyone in Michigan who makes minimum wage, as the state is set to raise the hourly pay for minimum wage employees on January 1, 2023.
Michigan's minimum wage is set to go from $9.87 to $10.10 as of the first of the new year. There is, however, pending litigation that could derail the increase.
New Rates for Minors and Tipped Employees
According to the Michigan Department of Labor Economic Opportunity, new pay rates for minors and tipped workers will go into effect on January 1 as well.
- The 85% pay rate for minors who are aged 16 to 17 will increase to $8.59 per hour.
- Tipped employees will see their hourly pay increase to $3.84 per hour.
Employees in training - those aged 16 to 19 years of age - will receive $4.25 per hour during their first 90 days of employment. That hourly rate remains unchanged from 2022.
Opposition to the Increase
According to Michigan.gov, there is pending litigation that could possibly affect the minimum wage increase slated for next year.
In 2018, a petition initiative organized by One Fair Wage sought voter approval to raise Michigan's minimum wage to $12 per hour by 2022. However, legislation was adopted and amended that same year that put lower wage thresholds in place, raising the hourly to $12.05 by 2030 rather than 2022. This legislation also capped the tipped minimum wage at 38% of the hourly rate.
Michigan's minimum wage increased from $9.65 per hour to 9.87 in 2022.