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The Michigan Supreme Court recently reinstated voter-initiated versions of the state’s minimum wage and paid sick leave laws, resulting in significant changes to the minimum wage rates. On October 1, 2024, the Michigan Department of Labor and Economic Opportunity issued a press release detailing these changes, which will take effect in 2025. Notably, Michigan’s minimum wage will increase twice in 2025 – first on January 1, 2025, and again on February 21, 2025.
The minimum wage will continue to rise annually on February 21, according to the following schedule:
Starting in October 2028, the state treasurer will calculate an adjusted minimum wage rate based on inflation. This adjusted rate will be published by November 1 of the year it is calculated and will take effect on February 21 of the following year.
The minimum hourly wage rate for tipped employees will undergo significant changes:
Employers should prepare for the upcoming wage increases by adjusting their payroll systems accordingly. In doing so, they need to be aware of the different wage rates for standard employees, minors, tipped employees, and those under the training wage. Additionally, employers should monitor the annual adjustments starting in 2028 to ensure compliance with the new rates.
Contact the author Erica Jilek.
