Michigan Minimum Wage Law Raised to $9.25 by January 1, 2018 | Practical Law

Michigan Minimum Wage Law Raised to $9.25 by January 1, 2018 | Practical Law

Michigan Governor Rick Snyder has signed the Workforce Opportunity Wage Act (SB 0934 of 2014 (PA 0138 of 2014)) into law. The new law will raise the minimum wage to $9.25 by January 1, 2018.

Michigan Minimum Wage Law Raised to $9.25 by January 1, 2018

Practical Law Legal Update 3-570-0151 (Approx. 3 pages)

Michigan Minimum Wage Law Raised to $9.25 by January 1, 2018

by Practical Law Labor & Employment
Published on 02 Jun 2014Michigan
Michigan Governor Rick Snyder has signed the Workforce Opportunity Wage Act (SB 0934 of 2014 (PA 0138 of 2014)) into law. The new law will raise the minimum wage to $9.25 by January 1, 2018.
On May 27, 2014, Michigan Governor Rick Snyder signed the Workforce Opportunity Wage Act (SB 0934 of 2014 (PA 0138 of 2014)) into law, gradually raising the minimum wage to $9.25 by January 1, 2018.
Specifically, the new law will increase the minimum hourly wage rate:
  • Before September 1, 2014, to $7.40.
  • Beginning September 1, 2014, to $8.15.
  • Beginning January 1, 2016, to $8.50.
  • Beginning January 1, 2017, to $8.90.
  • Beginning January 1, 2018, to $9.25.
  • Every January beginning in January 2019, by an amount determined by the state treasurer at the end of the preceding calendar year to reflect the average annual percentage change in the consumer price index for the most recent 5-year period for which data is available.
Exceptions to the minimum hourly wage rate established under the new law exist for:
  • A new employee who is less than 20 years of age (employer may pay a training hourly wage of $4.25 for the first 90 days of employment).
  • An employee who is less than 18 years of age (the minimum hourly wage is 85% of the general minimum hourly wage).
  • An employee who receives gratuities in the course of his employment (the minimum hourly wage rate is $2.65 per hour before September 1, 2014 and 38% of the minimum hourly wage rate beginning September 1, 2014). If the gratuities plus the minimum hourly wage rate of $2.65 per hour do not equal or exceed the minimum hourly wage, the employer must pay any shortfall to the employee.
Any employee affected by any violation of this act, may, within three years:
  • Bring a civil action for recovery.
  • File a claim with the commissioner of the department of licensing and regulatory affairs. If the commissioner determines there is reasonable cause to believe there was a violation and is unable to obtain voluntary compliance by the employer within a reasonable period of time, the commissioner shall bring a civil action.
An employer who violates this act is also subject to a civil fine of up to $1,000.
The new law, which became effective immediately, applies to any employer (including the state and its political subdivisions) who employs two or more employees at any one time within a calendar year.