In accordance with the Workforce Opportunity Wage Act of 2014, Michigan’s minimum hourly wage will increase on January 1, 2018. For non-tipped employees, the rate will increase from $8.90/hour to $9.25/hour. The minimum wage will also increase for tipped employees as they are paid a percentage of the state’s hourly wage. When the Act was first adopted in 2014, it raised the minimum wage to $8.15/hour, with additional increases to $8.50/hour in 2016 and $8.90/hour in 2017.
In according with the Act, any future adjustments to the hourly wage shall not exceed 3.5% and will be established by the State Treasurer based on the unemployment rate and the Consumer Price Index.
However, there is a chance the minimum wage could increase by greater amounts following the November 2018 general election. “At this time, there are two groups working to increase the minimum wage through the ballot proposal process. If either of those make it onto the ballot, and are approved by a majority of Michigan voters, it would replace this Act and incrementally increase the minimum wage by greater amounts,” explained Tim Ward of MLC.
For more information, please visit www.michigan.gov/wagehour.
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