(WWJ) The start of the New Year brings an increase to the minimum wage in Michigan. The standard wage has increased from $9.87 to $10.10-per-hour, beginning today.
Also effective January 1, 2023: The 85% rate for minors aged 16 and 17 will increase to $8.59 per hour, and the tipped employee rate of hourly pay increases to $3.84 per hour.
Teenage workers should note that the training wage of $4.25 per hour for newly-hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.
Wages will continue increasing every year through 2030 due to legislation passed that was meant to curb a voter initiative passed in 2018 that would have seen the increases happen over a shorter period of time.
Michiganders should keeo in mind, however, that there is is pending litigation that might affect this minimum wage increase. And it's a little complicated.
In 2018, a petition initiative organized by One Fair Wage sought to allow voters to decide on raising Michigan’s minimum wage to $12 an hour by 2022 and raise the minimum wage for tipped workers to 80% of the standard minimum wage in 2022, 90% in 2023 and ultimately match it in 2024.
The Legislature adopted the legislation and then amended it in 2018, putting in lower wage thresholds that increased the minimum wage to $12.05 by 2030 instead of 2022 and kept the tipped minimum wage at 38% of the standard one. As a result, the state's current hourly minimum wage is $9.87 and $3.75 for workers who are expected to make up the difference in tips.
The Legislature’s amendment has been challenged in court as unconstitutional. On July 19, 2022, the Court of Claims issued a decision that agreed with that challenge and voided the amended versions of the Michigan Improved Workforce Opportunity Wage Act and Paid Medical Leave Act in favor of their original, unamended versions.
On July 29, 2022, the Court of Claims entered an order staying the effect of this decision until February 19, 2023, to give employers and the relevant state agencies time to accommodate the changes required by the ruling.
The Court of Claims’ ruling has been appealed since that time. Pending final resolution of the appeal, and lifting of the stay, under the potential implementation of the originally adopted petition, the minimum wage rate for 2023 would be $13.03 and $11.73 for tipped employees.
Questions? Get more details about Michigan's minimum wage from the state at this link.
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