On Tuesday, May 27, 2014, Michigan Governor Rick Snyder signed the Workplace Opportunity Wage Act (S.B. 934) into law. The Act will increase Michigan’s minimum wage from $7.40 to $9.25 per hour over the next four years – an overall increase of 25%. The increase will occur in phases beginning on September 1, 2014 as set forth below.
- Beginning September 1, 2014 - $8.15
- Beginning January 1, 2016 - $8.50
- Beginning January 1, 2017 - $8.90
- Beginning January 1, 2018 - $9.25
For employees that receive gratuities, tips or voluntary monetary contributions from guests, patrons, or customers for services rendered, the minimum hourly rate will be 38% of the hourly wage rates set forth above.
Additionally, beginning in January 2019, every year the Michigan state treasurer will adjust the minimum wage to “reflect the average annual percentage change in the consumer price index for the most recent 5-year period.” The Wage and Hour Division of Michigan’s Department of Licensing and Regulatory Affairs will post the adjusted minimum wage on its website by February 1 and the adjusted rate will go into effect beginning April 1 of each year. The annual increase will not exceed 3.5%.