While the federal minimum wage of $7.25 has not increased since 2009, states can impose a minimum wage above the federal amount. As we have mentioned before, Michigan has done just that, and on January 1, 2018, the Michigan minimum wage increased $0.35 to $9.25 per hour. This increase is the result of the Workforce Opportunity Wage Act, which took effect in May of 2014. The Act also increases the youth training wage – 85% of the minimum wage for employees ages 16 and 17 – to $7.86 per hour.
Any changes to the minimum wage in 2019 and beyond will be determined by the consumer price index for the Midwest region as well as the previous year’s unemployment rate.