Increases in Minimum Wage in Michigan
On January 1, 2016, Michigan increased the minimum wage from $8.15 to $8.50 an hour. For tipped employees, it was raised from $3.10 to $3.23 an hour. For minors, 16-17, they are only required to be paid 85% of the minimum wage or the federal minimum wage, whichever is greater. Currently, minors 16-17 in Michigan must be paid the federal minimum wage of at least $7.25 an hour.
The minimum wage in Michigan is scheduled to continue increasing. In 2017, it will be raised to $8.90 and in 2018, it will be raised again to $9.25. Currently, Washington D.C. has the highest state minimum wage at $10.50. However, the city of Seattle has implemented a minimum wage of $15 to be phased in over the next seven years. Michigan’s minimum wage is competitive. It is currently only .50 lower than Minnesota, Nebraska, and New York that are tied for the 10th highest in the country at $9.00.
The President has proposed an increase of the federal minimum wage to $9.00 an hour by the end of 2015 which a White House report says would boost the wages of 15 million workers in the country.
Minimum wage laws have been in effect in this country since 1938. Since then, the federal minimum wage has been raised 22 different times. The US Department of Labor regulates the federal minimum wage laws under the Fair Labor Standards Act. When a state has a higher minimum wage, like Michigan, the state law governs. In Michigan the Department of Licensing and Regulatory Affairs enforces the Minimum Wage Law through the Wage & Hour Division.