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Michigan became the eighth state to enact a minimum wage hike when Governor Rick Snyder signed a law to increase the minimum wage to $9.25 per hour by 2018 and tie future increases to inflation.
Under the new law, Michigan’s minimum wage will rise to:
• $8.15 on September 1, 2014
• $8.50 on January 1, 2016
• $8.90 on January 1, 2017
• $9.25 on January 1, 2018
On September 1, 2014 the minimum wage for tipped employees will be 38 percent of the regular minimum wage. This amount is currently at $2.65 per hour, which amounts to about 35 percent of the $7.40 minimum wage.
View the official poster for the new Minimum Wage Law from Michigan.gov.
New year, new wage
Starting January 2019, the regular minimum wage will be adjusted annually for inflation. The annual adjustment will be capped at 3.5 percent, and there will be no increase if the state unemployment rate is 8.5 percent or higher.
Michigan last increased its minimum wage to $7.40 per hour in 2008, while the federal minimum wage has been at $7.25 per hour since 2009.
As of January 2014, Michigan is among 21 states with a minimum wage above the federal minimum wage.
EctoHR and the wage wave
EctoHR can help your company and employees navigate all aspects of Human Resources. Contact a team member of EctoHR by calling 810.534.0170, or by email to email@example.com.