Pay raise coming to Michigan’s minimum wage workers

(AP Photo/Victoria Arocho, FILE)

LANSING, Mich. (WOOD) — Thousands of Michigan workers will usher in the New Year with a fatter paycheck.

The state’s minimum wage rate is slated to increase from $8.50 per hour to $8.90 per hour beginning Jan. 1, 2017. This is the state’s third increase toward its ultimate goal of $9.25 per hour in 2018.

The minimum wage increase applies to businesses with two or more employees age 16 or older. Tipped employees will also see a slight uptick in their minimum hourly wage, from $3.23 to $3.38 per hour.

However, state law allow employers to pay newly hired workers between 16 and 19 years old an hourly rate of $4.25 during their first 90 days of employment. The Workforce Opportunity Wage Act also allows Michigan employers to pay 85 percent of the minimum wage rate to 16 and 17-year-old employees, as long as the wage is still higher than the federal minimum wage of $7.25 per hour.

An estimated 101,000 Michigan workers were at or below minimum wage last year, according to the United States Department of Labor’s Bureau of Labor Statistics.



Bureau of Labor Statistics on minimum wage

Michigan Wage & Hour Division