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ALERT: Michigan’s Minimum Wage Goes Up 9/1/14

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Melissa J. Jackson
Foster Swift Business & Corporate Law Report
August 28, 2014

On May 27, 2014, the Minimum Wage Law was repealed and replaced by the Workforce Opportunity Wage Act. One of the changes in the Workforce Opportunity Wage Act is that minimum wage will be increased in steps over the next four years:

  • September 1, 2014 - $8.15/hour
  • January 1, 2016 - $8.50/hour
  • January 1, 2017 - $8.90/hour
  • January 1, 2018 - $9.25/hour

For employees who receive tips, the minimum hourly wage will be:

  • September 1, 2014 - $3.10
  • January 1, 2016 - $3.23
  • January 1, 2017 - $3.38
  • January 1, 2018 - $3.52

If the tips, added to the minimum hourly rate for tipped employees above, do not equal or exceed the minimum hourly wage for non-tipped employees, the employer must make up the difference.

A training wage of $4.25 per hour may be paid to employees 16-19 years of age for the first 90 days of their employment.

Minors 16-17 years of age may be paid 85 percent of the minimum hourly wage rate:

  • September 1, 2014 - $6.93*
  • January 1, 2016 - $7.23*
  • January 1, 2017 - $7.57
  • January 1, 2018 - $7.86

*The 85 percent rate of $6.93 per hour and $7.23 per hour are lower than the current federal minimum wage of $7.25/hour. Michigan’s Workforce Opportunity Wage Act states that, if Michigan’s minimum wage is lower than federal minimum wage, the federal Fair Labor Standards Act will apply. So, unless the federal minimum wage is raised, during the period of 9/1/14 and 1/1/17, federal law, instead of state law, will apply to minors 16-17 years of age.