Michigan Enacts Gradual Minimum Wage Increase to $9.25/Hour

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On May 27, 2014, Michigan enacted a law that will gradually increase the minimum wage from its current $7.40 to $9.25 per hour by January 1, 2018. For tipped employees, the rate will eventually increase from $2.65 to 38 percent of the regular minimum wage.

The minimum wage will increase in four stages over the next 3 ½ years: to $8.15 on September 1, 2014, to $8.50 on January 1, 2016, to $8.90 on January 1, 2017, before reaching $9.25 on January 1, 2018. Beginning January 2019, annual future increases will be tied to inflation and become effective each April, in an amount not to exceed 3.5 percent.

 


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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