New minimum wage in Michigan: How much is the increase and when does it come into effect?

While the federal minimum wage has been stagnant for the best part of two decades, individual states are well within their rights to set their own. This is the case with Michigan, which had its wage set at $10.10 for 2023.

This will be increasing for 2024, though don’t get your hopes up as it is rather insignificant.

The minimum wage is rising from $10.10 to $10.33 per hour, a $0.23 increase. For other workers, the 85% of the minimum hourly wage rate for minors ages will increase to $8.78 per hour while tipped employees pay will increase to $3.93 per hour.

History of the minimum wage in Michigan

Michigan initially established its own minimum wage laws in 1964, setting the minimum wage at $1.25 per hour. This has steadily increased in the following 60 years to where it sits today.

Michigan’s Improved Workforce Opportunity Wage Act of 2018 requires the minimum wage to increase every year unless the unemployment rate s higher than 8.5%.

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There is a legal battle being wrought in the state to raise the minimum wage further. The Michigan Supreme Court is hearing arguments for an increased minimum wage that could be on the ballot for 2024.

The Republican-controlled legislature amended a law that would have increased the minimum wage with inflation as well as watering-down the removal of tipped-employee wages.