Michigan's Minimum Wage
Effective February 21, 2025:
- Michigan's minimum wage is $12.48 per hour.
- The 85% rate for minors aged 16 and 17 is $10.61 per hour.
- The rate for tipped employees is $4.74 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.
After the Michigan Supreme Court ruled on a case in July 2024 triggering the elimination of the tip credit and the enactment of the most rigid, burdensome paid leave mandate in the country, the MRLA advocated tirelessly for our industry and is proud to announce that on February 21, 2025, bipartisan MRLA-backed bills were signed into laws that saves the tip credit, responsibly increases the minimum wage, and smooths out rigid aspects of the paid leave laws.
As a result, the changes to Michigan's minimum wage laws include the following:
As a result, the changes to Michigan's minimum wage laws include the following:
- Increases the minimum wage to $12.48 per hour on February 21, 2025 while maintaining the tipped wage of 38% for the rest of the year
- Increases the minimum wage to $13.73 on January 1, 2026 with a 40% tipped wage
- Increases minimum wage to $15 on January 1, 2027 with a 42% tipped wage
- Increases the minimum wage based on CPI-Midwest on January 1, 2028 with a 44% tipped wage
- Increases the minimum wage based on CPI-Midwest on January 1, 2029 with a 46% tipped wage
- Increases the minimum wage based on CPI-Midwest on January 1, 2030 with a 48% tipped wage
- Continues to increase the minimum wage annually based on CPI-Midwest with the tipped wage increase capped at 50%
Minimum Wage Frequently Asked Questions
Can a tipped worker be required to share tips with other workers or participate in tip pooling arrangements?
No. In accordance with Michigan’s Minimum Wage Law, employees covered by the tipped minimum wage may share the employee’s gratuities with another employee voluntarily. This does not prohibit tip sharing or tip pooling agreements, however, the employee entering must be informed that this is voluntary on the part of the employee and refusing to share tips does not impact the opportunity for employment or continued employment. Further, the employee must be provided the ability to cancel the agreement without fear of reprisal. Under Michigan Payment of Wages & Fringe Benefits law, any deduction from wages requires:
Management or supervisory employees cannot participate in tip pooling or tip sharing agreements at any time nor receive any portion of tips received by an employee.
Employers covered by the Fair Labor Standards Act (FLSA) and Michigan Wage & Hour laws must follow the stricter standard.
- The full, free, and written consent of the employee, obtained without intimidation or fear of discharge for refusal to permit the deduction.
- The deduction must not reduce the gross wages paid to less than the full minimum wage.
- Each deduction must be substantiated in the records of the employer and must be identified as pertaining to the individual employee.
- See Michigan Public Act 390 of 1978 for further details.
Management or supervisory employees cannot participate in tip pooling or tip sharing agreements at any time nor receive any portion of tips received by an employee.
Employers covered by the Fair Labor Standards Act (FLSA) and Michigan Wage & Hour laws must follow the stricter standard.
