Michigan's minimum wage will increase twice in 2025 after the Michigan Supreme Court ruling earlier this year.
The Supreme Court struck own the Michigan Legislature's "adopt and amend" strategy, which started over the 2018 campaign from One Fair Wage which sought to allow voters to decide on raising the state's minimum wage.
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They had enough signatures to go to the ballot, but the Republican-led Michigan legislature instead adopted both bills, and then amended them later, increasing the minimum wage to $12.05 per hour by 2030. A Court of Claims judge ruled that the adopt and amend policy was unconstitutional, but the Court of Appeals judges ruled that it was legal. The Supreme Court disagreed.
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Because of that, the minimum wage will increase twice.
First, on Jan. 1, 2025, it will increase in accordance with the usual rate increase schedule. It will increase again on Feb. 21, 2025.
From Jan. 1 through Feb. 20, the minimum hourly wage will:
- Increase from $10.33 to $10.56 per hour.
- The 85% rate for minors under the age of 18 will increase from $8.78 to $8.98 per hour.
- The tipped employee rate of hourly pay increases from $3.93 to $4.01 per hour.
- The training wage of $4.25 per hour for newly hired employees under the age of 20 for their first 90 calendar days of employment remains unchanged.
Then, starting Feb. 21, 2025, the rates for tipped employees will be:
- Minimum Hourly Wage Rate: $12.48
- Minimum Hourly Rate: $5.99
- Minimum Reported Average Hourly Tips: $6.49
- 85% rate: $10.61
Those numbers will then go up every year after on Feb. 21 through 2028.
- 85% Rate: Minors under the age of 18 may be paid 85% of the minimum hourly wage rate.
- Training Wage: A training wage of $4.25 per hour may be paid to employees under 20 years of age for the first 90 calendar days of employment.
For tipped employees, the rate will increase on this schedule:
- Effective Feb. 21, 2026, it will be 60% of the minimum hourly wage rate.
- Effective Feb. 21, 2027, it will be 70% of the minimum hourly wage rate.
- Effective Feb. 21, 2028, it will be 80% of the minimum hourly wage rate.
- Effective Feb. 21, 2029, it will be 90% of the minimum hourly wage rate.
- Effective Feb. 21, 2030, and thereafter, it will be 100% of the minimum hourly wage rate.
Starting in October 2028 and every October after, the state treasurer will calculate an adjusted minimum wage, increasing it by the rate of inflation. That adjusted minimum wage rate will be published by Nov. 1 and will be effective starting Feb. 21 of the following year.
