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Michigan Minimum Wage Increase

By August 21, 2014 No Comments

There’s been a lot of talk about raising the minimum wage not only in Michigan, but nationwide this year.  Starting January 2019, the regular minimum wage will be adjusted based on the average annual percentage change in the Midwestern consumer price index over a five-year period. The adjustment will be capped at 3.5 percent, and there will be no increase if the state unemployment rate is 8.5 percent or higher.  

Effective September 1st, 2014 the hourly minimum wage will increase from $7.40 to $8.15. Also on September 1, the minimum wage for tipped employees will be 38 percent of the regular minimum wage. It’s currently $2.65 per hour, which amounts to about 35 percent of the $7.40 minimum wage. 

Minors 16-17 years of age may be paid 85% of the minimum hour wage rates. For training wages a rate of $4.25 per hour may be paid to employees 16 to 19 years of age for the first 90 days of employment.

Overtime employees are covered by the Workforce Opportunity Wage Act and must be paid 1-1/2 times their regular rate of pay for hours worked over 40 in a workweek.

For more information on the minimum wage in Michigan and how it has changed see the link below or contact Terry Maycroft (231) 726-5825.