New Minimum Wage Takes Effect Next Month

A new minimum wage takes effect in Michigan in one month. Come January 1, the state’s minimum wage goes up to $9.25 per hour from $8.90 per hour. This is the final scheduled increase provided for in Public Act 138, the Workforce Opportunity Wage Act of 2014. Any future adjustments after January 2018 will not exceed 3.5% and will be established by the Michigan Treasurer based on the unemployment rate and the Consumer Price Index under state law. Under the Workforce Opportunity Wage Act of 2014, the minimum wage in Michigan rose from $7.25 to $8.15 in 2014. After that, it went up incrementally until reaching the final $9.25 per hour on January 1 of 2018. State law also allows an employer in Michigan to pay 85% of the minimum hourly wage rate to employees aged 16 and 17.