New Year, New Rules

Michigan employers and employees will see some changes in 2026 as updates to the state’s minimum wage and unemployment benefits take effect.

Minimum wage increases

Effective January 1, 2026:

• The minimum hourly wage has increased from $12.48 to $13.73 per hour.
• The 85% rate for minors aged 16 and 17 has increased from $10.60 to $11.67 per hour. (The training wage of $4.25 per hour for newly hired employees under the age of 20 for their first 90 calendar days of employment remains unchanged.)
• The tipped employee rate of hourly pay has increased to $5.49 per hour, 40% of the full minimum wage, provided the employee receives at least $8.24 in tips.

Unemployment benefits expanded

Unemployment benefits are also increasing in the new year. Starting January 1, 2026, eligible claimants may receive up to $530 per week, up from the current $446, with higher allowances available for qualifying dependents. These increases are part of broader unemployment insurance reforms designed to strengthen financial support during periods of job transition. Weekly benefit amounts will continue to rise in future years under a phased schedule tied to inflation.

Employers are encouraged to review these changes now and plan accordingly for 2026. Additional information on the minimum wage increases is available through the Michigan Department of Labor and Economic Opportunity.

Questions? Contact us today at 248.477.6300.