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A Better Partnership

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Mar 2006
29
March 29, 2006

Michigan Minimum Wage to Increase

Governor Granholm signed a bill on Tuesday, March 28, 2006, that will increase Michigan's minimum wage by more than 43 percent over the next two years. The current state minimum wage is $5.15 per hour. It will increase to $6.95 per hour on October 1, 2006. At $6.95 per hour, Michigan will have the eighth highest state minimum wage in the country. The hourly minimum wage will then increase to $7.15 on July 1, 2007, and to $7.40 on July 1, 2008.

Although most employers are also subject to the Federal Fair Labor Standards Act, which sets the minimum wage at $5.15 per hour, they will have to comply with the Michigan minimum wage requirements because it is more beneficial to employees. If you do business in more than one state, you should confirm that you are complying with whichever law--state or federal--that provides your employees with the greatest protection. Some states, like California, also have special overtime compensation requirements. A helpful summary to all the state minimum wage and overtime requirements can be found at www.dol.gov/esa/minwage/america.htm.

If you have any questions regarding the minimum wage increase and how it affects your company, please feel free to contact a member of our Labor and Employment Group or Rob Dubault at 231.727.2638 or rdubault@wnj.com.
 

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