LANSING, Mich. (Michigan News Source) – On Jan. 1, minimum wage in Michigan will increase from $9.87 to $10.10 per hour as per the Improved Workforce Opportunity Wage Act of 2018, the Michigan Department of Labor and Economic Opportunity (MDLEO) reported.

On Jan. 1, the standard hourly minimum age will increase to $10.10 per hour, the 85 percent rate for minors aged 16 and 17 will increase to $8.59 per hour, and the hourly rate for tipped employees will increase to $3.84 per hour, the MDLEO said.

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Pending litigation may affect these minimum wage increases. A petition organized by One Fair Wage in 2018 sought to put forth a proposal to raise standard minimum wage to $12 per hour and raise minimum wage for tipped workers to 80 percent of the standard minimum wage by 2022.

Legislature adopted and amended this legislation in 2018, putting wage thresholds that will increase standard minimum wage to $12.05 per hour by 2030, not 2022. This amendment was challenged in court as unconstitutional, and the Court of Claims agreed with that challenge and voided this amendment on July 19, 2022. On July 29, 2022, the Court of Claims entered an order staying the effect of this decision until Feb. 19, 2023. This ruling has been appealed.

Pending final resolution of the appeal, under the potential implementation of the originally adopted petition, minimum wage would increase to $13.03 for standard employees and $11.73 for tipped employees in 2023.

For more information on the pending minimum wage litigation, and potential amended minimum wage rates, click here.