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Summary of differences between federal and state regulations
The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. Michigan employers not otherwise covered by the FLSA exemptions must also comply with Michigan’s overtime requirements.
Effective February 21, 2025, the minimum wage for Michigan employees is $12.48 per hour ($4.74 for tipped employees)
Effective January 1, 2025, the minimum wage for Michigan employees is $10.56 per hour ($4.01 for tipped employees.
Effective January 1, 2024, the minimum wage for Michigan employees is $10.33 per hour ($3.93 for tipped employees).
Effective January 1, 2023, the minimum wage for Michigan employees is $10.10 per hour ($3.84 for tipped employees). For tipped employees, the minimum hourly wage rate is 38 percent of the minimum hourly wage rate that is established.
The Michigan minimum wage will be as follows:
- $13.73 effective February 21, 2026.
- $15.00 effective February 21, 2027.
For October 2027, and beyond, the minimum wage will be adjusted for inflation.
Legislation (SB 8) rescinded the elimination of the tip credit employers may take against the minimum wage for tipped workers. Instead, the tip credit will be gradually reduced 2% per year through 2031, at which point it will be equal to 50% of the standard minimum wage.
New employees who are less than 20 years of age can be paid a training wage of $4.25 per hour for the first 90 days of employment. The minimum wage for employees under 18 years of age is 85 percent of the general minimum wage ($8.98 from January 1, 2025, to February 21, 2025; then $10.61 effective February 21, 2025).
Prior to February 21, 2025: Every October, the state treasurer shall calculate an adjusted minimum wage rate. An increase in the minimum hourly wage rate does not take effect if the unemployment rate for this state is 8.5 percent or greater for the calendar year preceding the calendar year of the prescribed increase. An increase in the minimum hourly wage rate as prescribed that does not take effect pursuant to this, takes effect in the first calendar year following a calendar year for which the unemployment rate for this state, as determined by the Bureau of Labor Statistics, United States Department of Labor, is less than 8.5 percent.
Every October beginning in October, 2027, the state treasurer shall calculate an adjusted minimum wage rate. The adjustment must increase the minimum wage by the rate of inflation. The state treasurer shall calculate the increase by multiplying the otherwise applicable minimum wage by the 12-month percentage increase, if any, in the Consumer Price Index for the midwest region, CPI-U, or a successor index, as published by the Bureau of Labor Statistics of the United States Department of Labor, based on the most recent 12-month period for which data are available. The state treasurer shall publish the adjusted minimum wage rate by November 1 of the year in which it is calculated. The adjusted minimum wage rate is effective beginning January 1 of the immediately succeeding year.
State
Contacts
Michigan Department of Consumer and Industry Services
Bureau of Workers’ and Unemployment Compensation
Regulations
Chapter 408, Section 408.414 of the Michigan Compiled Laws
408.414 Minimum hourly wage rate
Federal
Contact
The Department of Labor is the federal agency that monitors hours worked.
Regulations
U.S. labor regulations for minimum wage can be found in CFR 29 Part 531 and FLSA.