Chamber-backed legislation to improve Michigan's new minimum wage law was passed by the Michigan Senate last week. The bill is now before the House; action is expected this week.
The legislation would increase the minimum wage from $9.25 an hour to $12 per hour over 12 years. It would increase the wage for tipped employees from $3.52 to $4.00 over the same timeframe. In addition, the bill would repeal the provision in current law that puts annual increases on autopilot by tying the minimum wage to the rate of inflation. This proposal takes a pragmatic approach to increasing the minimum wage. As proposed, Michigan would still have the highest minimum wage rate in the Midwest and one of the highest minimum wage rates in the nation. If the Legislature fails to adopt this legislation, or the Governor refuses to sign it, Michigan’s minimum wage will increase from $9.25 to $10 beginning January 1, 2019, and to $12 per hour by January 1, 2022. The wage for tipped employees will also increase from $3.52 to 100 percent of the minimum wage by 2024. Click here for a summary of the Act as adopted in September of 2018 and the changes adopted by the Senate on November 28, 2018.