Origins of the Legislation
On September 5, 2018, the Michigan legislature adopted a ballot proposal concerning minimum wage in the State of Michigan. The proposal was amended and signed into law December 4, 2018.
Impact of the New Law
Michigan’s minimum hourly wage rate increases from
$9.25 to $9.45 beginning March 29, 2019
Additional annual increases will be implemented until 2030
Wage discrimination is expressly prohibited
Minimum wage rate for tipped workers also increases
Defines penalties for violation of the act
Minimum Wage Comparison
Michigan has one of the highest minimum wage rates in the Midwest, outpacing Indiana ($7.25), Illinois ($8.25), Ohio ($8.10) and Wisconsin ($7.25).
Impact on Tipped Workers
The new law requires that tipped employees make at least the minimum wage. If their tips plus the tipped employee minimum wage does not equal or exceed the regular minimum wage, the employer must pay any shortfall to the employee.
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