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Minimum Wage Increase for Michigan Employees Takes Effect March 29

Overview of Wage Changes To Take Effect Later This Month

Posted by Perry Pulse at 12:53am 3/22/19

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Effective March 29, 2019, Michigan’s minimum wage will increase from $9.25 to $9.45 per hour. A copy of the Improved Workforce Opportunity Wage Act (Public Act 337 of 2018) and related resources – including the required poster – can be found here.

Overtime requirements remain the same under the Improved Workforce Opportunity Wage Act; non-exempt employees should be paid 1.5 times their regular rate of pay for hours worked over 40 in a 7-day work week.

Employees 16 to 19 Years of Age

An employer may continue to pay minors 16 to 17 years of age 85% of the minimum hourly wage rate. On March 29, 2019, that rate will increase from $7.86 to $8.03 per hour. There is no change to the training wage of $4.25 per hour that may be paid to newly hired employees, 16 to 19 years of age, for the first 90 days of their employment.

Tipped Employees

Public Act 337 of 2018 allows employers to take a tip credit on minimum wage under certain conditions for employees who customarily and regularly receive tips from a guest, patron or customer for services rendered to that guest, patron, or customer.

Tipped employees may be paid 38% of the minimum hourly wage rate, provided:

Employees are informed in advance of being paid about the tip provisions, and
Employees receive tips and they are proven gratuities as indicated by the employee's declaration for Federal Insurance Contribution Act, and
The tips received plus the wages paid equals or exceeds the minimum hourly wage rate and, if not, the employer pays the shortfall.
Effective March 29, 2019, 38% of the minimum hourly wage rate will increase from $3.52 to $3.59 per hour.

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*An increase in the minimum hourly wage rate does not take effect if the unemployment rate for this state, as determined by the Bureau of Labor Statistics, United States Department of Labor, is 8.5% or greater for the calendar year preceding the calendar year of the scheduled increase. An increase in the minimum hourly wage rate that does not take effect under these conditions, will take effect in the first calendar year following a calendar year for which the unemployment rate for this state, as determined by the Bureau of Labor Statistics, United States Department of Labor, is less than 8.5%.

For questions or additional information, call the wage and Hour Division at 855-464-9243 or visit the agency’s website.

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