Employers in Michigan will be required to increase wages for employees making the minimum wage by Sept. 1, 2014.
Senate Bill 934, which was signed by Gov. Snyder on May 27, increases the state’s minimum wage from $7.40 per hour to $8.15 per hour on September 1, 2014; $8.50 per hour on January 1, 2016; $8.90 per hour on January 1, 2017; and $9.25 per hour on January 1, 2018. The legislation was passed to ward off a dangerous ballot proposal that, if adopted by voters in November, would have increased Michigan’s minimum wage to $10.10 per hour.
Employers with employees earning tips will also be required to increase those employees’ wages from $2.65 per hour to $3.10 per hour beginning September 1, 2014. However, if an employee’s tips plus the tipped minimum wage rate does not equal or exceed the minimum wage rate ($8.15 per hour), the employer must pay any shortfall to the employee.
This increase requires employers to post a revised Michigan Minimum Wage & Overtime notice. For your convenience, the Michigan Chamber has consolidated all mandatory state and federal notices in their required sizes on four 18x24 panels. Panels may be ordered here.
While the increase in the minimum wage is far from ideal for many employers, the Legislature made the best of a bad situation given the looming ballot proposal. Please contact Wendy Block with any questions at firstname.lastname@example.org or (517) 371-7678.