Michigan’s minimum wage to increase on New Year’s Day

Published: Dec. 8, 2022 at 11:47 AM EST
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LANSING, Mich. (WNDU/WNEM) - Michigan’s minimum wage rate will increase from $9.87 to $10.10 per hour on Jan. 1, 2023, as set by the Improved Workforce Opportunity Wage Act of 2018.

This means the following will be effective on New Year’s Day:

  • The minimum hourly wage will increase to $10.10 per hour
  • The 85 percent rate for minors ages 16 and 17 will increase to $8.59 per hour
  • The tipped employee rate of hourly pay increases to $3.84 per hour.
  • 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

There is pending litigation that might affect this minimum wage increase. It could potentially go higher in February 2023 based on the outcome pf a lawsuit.

According to WNEM, A petition organized by One Fair Wage in 2018 sought to put forth a proposal to raise standard minimum wage to $12 per hour and raise minimum wage for tipped workers to 80 percent of the standard minimum wage by 2022.

Legislature adopted and amended this legislation in 2018, putting wage thresholds that will increase standard minimum wage to $12.05 per hour by 2030, not 2022. This amendment was challenged in court as unconstitutional, and the Court of Claims agreed with that challenge and voided this amendment on July 19, 2022. On July 29, 2022, the Court of Claims entered an order staying the effect of this decision until Feb. 19, 2023. This ruling has been appealed.

Pending final resolution of the appeal, under the potential implementation of the originally adopted petition, minimum wage would increase to $13.03 for standard employees and $11.73 for tipped employees in 2023.

For more information on the pending minimum wage litigation, and potential amended minimum wage rates, visit Michigan.gov/WageHour.

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