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Michigan Minimum Wage, Tip Credit Will Increase March 29

BY: APA Staff | 02/07/19

Effective March 29, 2019, the Michigan minimum wage will increase to $9.45 an hour from $9.25 an hour (this updates The Payroll Source®, §2.11-1) [S.B. 1171, L. 2018]. Previously, the minimum wage was scheduled to increase to $10 an hour, effective January 1, 2019.

Effective January 1, 2020, the state minimum wage will increase to $9.65 an hour. The minimum wage will then increase annually, effective January 1 of each year, until it reaches $12.05 an hour in 2030. However, a scheduled increase will not take effect in a given year if the state unemployment rate is 8.5% or greater for the preceding calendar year.

Tip Credit Increase

The minimum cash wage for tipped employees remains 38% of the minimum wage. Currently, the minimum cash wage is $3.52 an hour and the tip credit is $5.73 an hour. Effective March 29, 2019, the minimum cash wage will increase to $3.59 an hour and the tip credit will increase to $5.86 an hour (this updates The Payroll Source®, §2.11-2). The tip credit will increase each year as the minimum wage is increased

An updated Minimum Wage and Overtime Poster is available from the Michigan Department of Licensing and Regulatory Affairs.

Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.