On January 1, 2016, the state hourly minimum wage increased by 35 cents, from $8.15 to $8.50 – the second scheduled increase under the 2014 Workforce Opportunity Wage Act, which repealed and replaced the Michigan Minimum Wage Law. Meanwhile, minimum hourly wages for tipped employees rose to $3.23 per hour (total hourly wages, including tips, for such workers must total at least $8.50 per hour). Absent further legislation, the state minimum wage will be subject to further incremental upward adjustments: wages will be increased to $8.90 in 2017; to $9.25 in 2018; and beginning in 2019, increases will be tethered to inflation.

As of January 1, 2015, Michigan was one of 29 states to have a higher minimum wage than the rates mandated by federal law. (See Minimum Wage Laws in the States – January 1, 2015.) Michigan is one of several states to implement a minimum wage increase in the new year.

Employers should ensure that hourly work performed on or after January 1, 2016, is paid at the new rates. Note, too, that overtime paid for work performed on or after January 1, 2016, is also subject to the increase. Employers who fail to immediately comply risk civil complaints and investigation by administrative agencies.

For additional information about the Workforce Opportunity Wage Act, please see the State of Michigan Wage Hour Program’s Overview of the Workforce Opportunity Wage Act.

Please contact Wright Beamer if you need assistance with an employment-related matter.