In the November issue of the Kallas Insider Report, we stated that minimum wage for 2022 was not scheduled to go up.
At the time we wrote the article, that statement was correct.
The minimum wage law in Michigan is designed so that an annual increase in the minimum wage is scheduled automatically through 2030 unless the unemployment rate exceeds 8.5%.
On Friday December 3, the state announced that Michigan’s unemployment rate was less than 8.5% and issued new minimum wage rates for 2022.
Please be aware that the Kallas payroll service will make these changes for you automatically on January 1.
We are sorry for the original misinformation.
- Michigan’s minimum wage will increase to $9.87 an hour.
- Tipped employees rates of pay increases to $3.75 an hour.
- The 85% rate for minors aged 16 and 17 increases to $8.39 an hour.
- The training wage of $4.25 an hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.
Previously published:
You can pay tipped
employees as little as $3.67 per hour as long as the employees are informed of the tip provisions, they receive and report tips to you and the tips they receive plus the $3.67 you pay equals at least $9.65. The minimum tops they would have to report then is $5.98 per hour. If the employee does not make at least $5.98 in tips, the employer has to make up the difference.
If you have 2 employees or less ages 16 and older, and your sales are less than $500,000 per year, you are not subject to minimum wage rules.
You may pay minors 16 to 19 years of age under the same rules, $8.20 per hour.
Overtime pay of 1 ½ times their regular rate of pay is required after 40 hours in a 7 day week.
Currently, salaried workers whose primary job responsibilities involve “executive, administrative or professional” duties and whose salaries are less than $23,660 per year – or $455 per week – must receive overtime pay.
