The next scheduled increase under Michigan’s Improved Workforce Opportunity Wage Act is set to occur on January 1, 2026. The Act covers all Michigan employers that have two or more employees, 16 years of age or older.
Effective January 1:
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- The minimum hourly wage will increase from $12.48 to $13.73 per hour.
- The 85% rate for minors aged 16 and 17 will increase from $10.60 to $11.67 per hour.
- The tipped employee rate will increase to $5.49 per hour, which is 40% of the full minimum wage.
- The training wage of $4.25 per hour for newly hired employees under the age of 20 for their first 90 calendar days of employment remains unchanged.
Improved Workforce Opportunity Wage Act:
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- In 2018, two citizen initiatives raising the state’s minimum wage and earned sick time laws collected enough voter signatures to place the issues on the general election ballot.
- Before the election, the legislature chose to approve the measures, and shortly thereafter, it passed legislation greatly reducing the impact of the initiatives. Governor Snyder signed the changes into law.
- After years of legal challenges, the Michigan Supreme Court issued a ruling in July 2024 that the Michigan Legislature’s use of adopt and amend was unconstitutional and laid out a schedule to increase the rate similar to that within the citizens’ initiatives.
The next scheduled increase will occur on January 1, 2027:
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- The minimum hourly wage will increase to $15 per hour.
- The 85% rate for minors aged 16 and 17 will increase to $12.75 per hour.
- The tipped employee rate will increase to $6.30 per hour, which is 42% of the full minimum wage.
Please click here for more information on the state’s minimum wage and overtime laws.
