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May 2014
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May 30, 2014

Legislature raises Michigan’s minimum wage


On May 27, Gov. Rick Snyder signed a bill increasing Michigan’s current minimum wage of $7.40 per hour to $9.25 hourly by 2018.

The wage hike will occur in four stages with the first increase, to $8.15 per hour, taking effect this September. The minimum wage for waiters, waitresses and workers who earn most of their income from tips will gradually increase from the current $2.65 to $3.52 per hour by 2018.

In 2019, annual increases in the state’s minimum wage will be tied to inflation using a rolling five year average of the consumer price index in the Midwest, up to a maximum increase of 3.5 percent per year. The annual increase may not exceed 3.5 percent and the adjustment won’t take effect if Michigan’s unemployment rate surpassed 8.5 percent in the previous year.

The new law will result in a wage increase for approximately 1 million Michigan workers. It could also derail a ballot initiative that seeks to raise Michigan’s minimum wage to $10.10 per hour. Michigan was one of several states targeted by labor groups lobbying to raise the minimum wage to $10.10 per hour.  

Several states have raised their minimum wage this year, but Michigan was the first state with a Republican controlled Legislature to approve such a law.

For information on what businesses must do to comply with Michigan’s new minimum wage, contact Jonathan Kok (616.752.2487 or jkok@wnj.com) or any other member of Warner Norcross & Judd’s Labor and Employment Group.

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