Michigan's Minimum Wage |
Starting January 1, 2024:
- Michigan's minimum wage will increase to $10.33 per hour.
- The 85 percent rate for minors aged 16 and 17 increases to $8.78 per hour.
- The rate for tipped employees will increase to $3.93 per hour.
- The training wage of $4.25 an hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.
Michigan Supreme Court Ruling Impacts Minimum Wage & Tip Credit
Effective: February 21, 2025
According to the ruling clarification provided in September:
Effective: February 21, 2025
According to the ruling clarification provided in September:
- Michigan’s minimum wage will increase to approximately $12.48 per hour
- Michigan’s rate for tipped employees will increase to 48% of the minimum wage – approximately $5.99 per hour
- Michigan’s tip credit would continue to be phased out by 2030
- Thereafter, the minimum wage will increase by the rate of inflation and a separate wage for tipped employees will not exist
Historical Context
On July 31, 2024, the Michigan Supreme Court issued a ruling in the case Mothering Justice v. Attorney General. This ruling struck down Improved Workforce Opportunity Wage Act (2018 PA 368) and Paid Medical Leave Act (2018 PA 369), arguing that they are unconstitutional because they amended ballot initiatives that had been adopted into law within the same legislative session, an act that was not included in the three options provided to the Legislature under the initiative clause of the Michigan Constitution.
What's Next
The MRLA is actively working with the legislature and administration to secure a legislative solution in advance of the effective date of this ruling to offset its most damaging impacts to the hospitality industry. We know that a tip credit works, that it is preferred by servers, operators and customers alike, and that any increases in the minimum wage must be predictable and gradual in order to minimize any negative impact to an already-vulnerable industry. This is an existential, all-hands-on-deck moment for our industry. To keep our industry from keeling over, we must band together to make our voice heard loud and often.
How You Can Help
On July 31, 2024, the Michigan Supreme Court issued a ruling in the case Mothering Justice v. Attorney General. This ruling struck down Improved Workforce Opportunity Wage Act (2018 PA 368) and Paid Medical Leave Act (2018 PA 369), arguing that they are unconstitutional because they amended ballot initiatives that had been adopted into law within the same legislative session, an act that was not included in the three options provided to the Legislature under the initiative clause of the Michigan Constitution.
What's Next
The MRLA is actively working with the legislature and administration to secure a legislative solution in advance of the effective date of this ruling to offset its most damaging impacts to the hospitality industry. We know that a tip credit works, that it is preferred by servers, operators and customers alike, and that any increases in the minimum wage must be predictable and gradual in order to minimize any negative impact to an already-vulnerable industry. This is an existential, all-hands-on-deck moment for our industry. To keep our industry from keeling over, we must band together to make our voice heard loud and often.
How You Can Help
- Send a letter to your legislator urging them to support a legislative solution that saves Michigan's tip credit.
- Share your story! The MRLA amplifying the voices of owners and operators helps to secure a solution that maintains the tip credit. Submit a testimonial video sharing how this ruling will impact your business.
- Sign up to receive table tent kits to educate your guests on how they can help save the tip credit.