We would like to inform you of important changes to the minimum wage regulations in Michigan, The first will take effect January 1, 2025 and the second February 21, 2025.

Key Changes to the Michigan Minimum Wage:

January 1, 2025

The standard minimum hourly wage will increase from $10.33 to $10.56 per hour.

The tipped employee rate increases from $3.93 to $4.01.

The rate for minors under 18 will increase from $8.78 to $8.98 per hour.

The training rate of $4.25 for newly hired employees under the age of 20 for their first 90 days of employment remains the same.

February 21, 2025

Minimum Wage: The new minimum wage for non-exempt employees will increase to $12.48 per hour, up from the current rate of $10.56 per hour. This applies to most workers across the state, including part-time and full-time employees.

Tipped Employees (Servers): For employees who receive tips, such as servers, the minimum wage will increase to $5.99 per hour, up from the January 1 rate of $4.01 per hour. As a reminder, employers must ensure that tipped employees’ total earnings (including tips) equal or exceed the new standard minimum wage rate of $12.48 per hour.

Youth Minimum Wage: For employees under the age of 18, the minimum wage will rise to $10.60 per hour, ensuring fair pay for younger workers.

Overtime and Exemptions: Overtime rules remain unchanged. Non-exempt employees are still entitled to overtime pay (1.5 times their regular wage) for hours worked over 40 in a week. Certain exemptions and specific industries may have unique rules, so it’s important to review how these changes may impact your business or employment situation.

Action Required:

We will make the rate changes automatically.  Employers and employees should review their payroll reports and pay stubs and contact their employer with any questions or concerns.

We encourage everyone to stay informed about these new minimum wage rules and their impact. If you have any questions or need additional information, please feel free to reach out to us.