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Minimum Wage to Increase to $10.10 in January

Advocacy News – Dec. 8, 2022

Michigan’s minimum wage is set to increase to $10.10 per hour Jan. 1, 2023. While this rise reflects the increase specified under the 2018 law, a larger increase could come later in 2023 depending on how the Court of Appeals rules on litigation challenging the constitutionality of the Legislature’s enactment of the minimum wage and paid medical leave laws.

Under the Jan. 1 change, the full minimum wage will increase from $9.87 per hour to $10.10, and the wage for tipped employees will increase from $3.75 to $3.84 (which is 38% of the full minimum wage). Further, the rate for minors aged 16 and 17 will increase to $8.59 per hour, or 85% of the full minimum wage. The $4.25 per hour training wage for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged. Learn more about this increase.

This increase comes as questions loom around pending litigation at the Court of Appeals challenging whether the Legislature followed the Michigan Constitution in adopting and subsequently amending Michigan’s minimum wage and paid medical leave laws. Earlier this year, the Michigan Court of Claims found the two laws unconstitutional and ordered that previously enacted ballot initiatives on the topics take effect, which would have increased the minimum wage to $13.03 per hour and the wage for tipped employees to $11.73 an hour.

The court decision was stayed until Feb. 19, 2023, as a result of the appeal, and the Court of Appeals is now considering the issue. A hearing is scheduled for Dec. 13 in Detroit, and a decision is expected in January. Read more information on the litigation.

We will keep members up to date as this issue develops. Please contact Wendy Block with any questions at Wblock@michamber.com.

 

Advocacy News – Dec. 8, 2022

Michigan’s minimum wage is set to increase to $10.10 per hour Jan. 1, 2023. While this rise reflects the increase specified under the 2018 law, a larger increase could come later in 2023 depending on how the Court of Appeals rules on litigation challenging the constitutionality of the Legislature’s enactment of the minimum wage and paid medical leave laws.

Under the Jan. 1 change, the full minimum wage will increase from $9.87 per hour to $10.10, and the wage for tipped employees will increase from $3.75 to $3.84 (which is 38% of the full minimum wage). Further, the rate for minors aged 16 and 17 will increase to $8.59 per hour, or 85% of the full minimum wage. The $4.25 per hour training wage for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged. Learn more about this increase.

This increase comes as questions loom around pending litigation at the Court of Appeals challenging whether the Legislature followed the Michigan Constitution in adopting and subsequently amending Michigan’s minimum wage and paid medical leave laws. Earlier this year, the Michigan Court of Claims found the two laws unconstitutional and ordered that previously enacted ballot initiatives on the topics take effect, which would have increased the minimum wage to $13.03 per hour and the wage for tipped employees to $11.73 an hour.

The court decision was stayed until Feb. 19, 2023, as a result of the appeal, and the Court of Appeals is now considering the issue. A hearing is scheduled for Dec. 13 in Detroit, and a decision is expected in January. Read more information on the litigation.

We will keep members up to date as this issue develops. Please contact Wendy Block with any questions at Wblock@michamber.com.