18 December 2020

Michigan Minimum Wage Unlikely to Increase

The Wage and Hour Division of Michigan’s Bureau of Employment Relations recently announced that the state’s minimum wage is not expected to increase on January 1, 2021.  The current minimum wage, which is likely to extend through 2021, is $9.65 an hour.

Under Michigan law, the minimum wage for 2021 may not increase if the state’s annual unemployment rate for 2020 was 8.5% or higher.  The current unemployment rate for the entire 2020 year is 10.2%.  That rate is unlikely to drop below an average of 8.5% before the end of this year.

Under the current law, the next opportunity for an increase in Michigan’s minimum wage comes on January 1, 2022.  Assuming unemployment stays below 8.5% in 2021, the minimum wage will increase to $9.87.