With so many labor laws and an ocean of paperwork, it can get tricky to remember how much a minimum wage employee should earn in Michigan. While Michigan recently increased its minimum rate in 2024 to $10.33 per hour, there can still be some confusion about the labor laws that involve overtime pay, training wages, and tipped employees.
From Ann Arbor to Detroit, Grand Rapids, and Lansing, we've written a guide on Michigan's minimum wage that business owners, restaurant managers, and newly hired employees can use to check hourly pay increases each year.
What is Michigan's minimum wage?
The minimum hourly wage for employees in Michigan is $10.33 per hour. This minimum wage rate applies to all businesses with two or more employees, with some exceptions, such as Michigan's training wage of $4.25 per hour.
Is the minimum wage in Michigan different from the federal minimum wage?
Yes, the minimum wage in Michigan is higher than the federal minimum wage. The federal rate remains $7.25 per hour, while Michigan employees receive $10.33 per hour. According to the Department of Labor, the federal minimum wage rates are expected to remain unchanged.
Michigan pays slightly less than other states compared to the standard minimum wage rates throughout the country. California, for example, requires employers to pay minimum wage employees $16.00 per hour. Michigan still pays higher than other states, such as the Texas minimum wage laws requiring employers to pay the federal minimum wage of $7.25 per hour.
Did the minimum wage in Michigan increase in 2024?
Yes, the 2024 minimum wage in Michigan increased to $10.33 per hour. This increase came into effect on January 1, 2024. In 2025, Michigan's minimum wage will increase to $10.56 per hour. In the year preceding, the minimum wage increased from $10.10 to $10.33 per hour.
However, unlike other states, Michigan's minimum wage isn't always adjusted annually for hourly pay increases. According to Michigan's minimum wage laws, there will be no increase to the minimum hourly wage if the unemployment rate is below 8.5% for that year. That's why the Michigan minimum wage in 2021 did not increase beyond $9.65 per hour. The unemployment rate was below 8.5%.
Yearly Michigan minimum wage increases
Since the state minimum wage rates will slightly increase over the next few years, we've distilled the necessary information from the Labor Law Center website into an annual schedule of Michigan's wages between 2014 – 2025.
Does Michigan have a tipped minimum wage?
Yes, Michigan has a tipped minimum wage. In 2024, the minimum wage for tipped employees increased to $3.93 per hour, and a reported average hourly tipped wage of $6.40. Tipped employees can expect another increase to their wages in 2025, where they'll be paid $4.01 per hour, with an hourly tipped wage of $6.55.
Below is an annual schedule for Michigan's tipped employee rate for 2024 and 2025. The information can be found on Michigan's Department of Labor website.
Do minors get paid the same minimum wage in Michigan?
No, the minimum wage for minors in Michigan is slightly lower than the general state minimum wage rate. Employers must pay employees between 16 and 17 years old 85% of the state's minimum wage. Since the average minimum wage in Michigan is $10.33 per hour, the wage for minors would be $8.78 per hour, according to Michigan's Labor and Economy website.
Certain businesses can pay employees between 16 and 19 years of age a training wage of $4.25 per hour for the first 90 days of employment. However, training wage employment isn't meant to meet the typical livable wage rates. After those initial 90 days, employers should pay employees the minor wage if they are under 18 or the standard state minimum wage.
Does Michigan have an overtime minimum wage?
Yes, the minimum wage law in Michigan requires overtime pay for employees that exceed 40 hours of labor a week. After passing the Workforce Opportunity Wage Act, Michigan employers must pay their employees 1.5x the minimum wage for working overtime.
In 2024, overtime pay would be $15.495 per hour. If you want to learn more about the Improved Workforce Opportunity Wage Act, overtime pay, and more, we suggest reading the content published on Michigan's Department of Labor & Economic Opportunity webpage.
Use the right tech to stay labor-compliant
If you're an employer, you obviously want to ensure your workers see the right amount on their paychecks. But the art of crunching numbers can be more challenging than typing digits into a calculator. If you're a restaurant owner, you've got to calculate tips alongside other costs of running your business, which can all add up to delays and headaches.
With the right point-of-sale system, you can easily streamline all the time spent tediously checking if every number is in the right place while ensuring you check every box needed to stay labor-compliant. Start saving time and energy with SpotOn’s payroll, tip management, and employee scheduling software.
Interested in the minimum wages in different states? Check out our guides below to learn more:
DISCLAIMER: Everything here is just for informational purposes. The links and graphics may not be accurate and we encourage you to do your own research. Also, we can't guarantee results from following our advice. Always consult a professional for your specific situation.
