Michigan Minimum Wage Set to Increase in January

December 1, 2017

Effective January 1, 2018, the minimum wage rate will increase from $8.90 to $9.25. This new change to state law marks the end of a gradual 25 percent increase of the minimum wage.

The Workforce Opportunity Wage Act, Public Act 138 of 2014 (Act 138) took effect on May 27, 2014, replacing the Michigan Minimum Wage and Overtime Act (Act 154). Act 138 applies to employers in Michigan that have two or more employees age 16 and older.  

Youth Training Wage: Act 138 allows an employer to pay a newly hired employee age 16 to 19 $4.25 per hour for the first 90 days of employment.

85% Minimum Wage: Act 138 also allows an employer in Michigan to pay 85 percent of the minimum wage to employees aged 16 and 17; however, note that the current Federal Minimum Wage rate is $7.25 per hour. Employers that are covered by both State and Federal Minimum Wage law should pay the higher applicable rate.

Required Posters: Employers are required to post the state and federal minimum wage notices for employees. The Michigan Chamber makes it easy by consolidating ALL required state and federal postings for you. Order yours today!

Through the Michigan Chamber’s partnership with WageAccess, you can gain access to valuable Compensation, Benefits, Pay Practices and Incentive Pay information and trends in the State of Michigan, and across the United States. Learn more about discounts offered to Chamber members.