Minimum Wage Takes Effect

Michigan’s minimum wage changes took effect yesterday. State lawmakers approved changes in the law that require an increase in the state minimum wage from $7.40 per hour to $8.15 per hour. The new minimum wage for employees who also earn gratuities will be approximately $3.10.

The increase will be phased in through January 2019. The graduated minimum wage increase is shown below:

Minimum Wage (Employees not receiving gratuities)
Starting September 1, 2014, the steps of the wage increase for employees not receiving gratuities are as follows:

Beginning September 1, 2014 – $8.15
Beginning January 1, 2016 – $8.50
Beginning January 1, 2017 –  $8.90
Beginning January 1, 2018 – $9.25

In January 2019, the minimum wage will be adjusted based on the annual percentage change in the Consumer Price Index (CPI).

Minimum Wage (Employees receiving gratuities)
Starting September 1, 2014, the hourly wage for employees who receive gratuities will be set at 38% of the regular minimum wage.The estimated increases are as follows:

Beginning September 1, 2014 – $3.10
Beginning January 1, 2016 – $3.23
Beginning January 1, 2017 – $3.38
Beginning January 1, 2018 – $3.51

In January 2019, the wage rate for gratuity earners will be 38% of the adjusted wage rate.