Overview of Michigan's Minimum Wage Requirements
As of February 13, 2024, the minimum wage in Michigan stands at $10.33 per hour, a slight increase from the previous year's $10.10 per hour. This increase is in line withMichigan's Improved Workforce Opportunity Wage Act of 2018, which sets an annual schedule of increases, ensuring a gradual rise in the minimum wage. For minors aged 16 and 17, the 85% rate has also seen an increase, now standing at $8.78 per hour. The tipped employee rate of hourly pay has followed suit, increasing to $3.93 per hour.
However, the training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 calendar days of employment remains unchanged. It's important to note that there is ongoing litigation that could potentially affect these minimum wage increases. The final resolution of the appeal is pending and could lead to significant changes in the near future.
Understanding Local Minimum Wage Variations
The minimum wage in Michigan is consistent across all counties, including Wayne, Oakland, Macomb, Kent, Genesee, and cities like Detroit, Grand Rapids, Warren, and Ann Arbor. As of January 1, 2024, the minimum wage in these areas is $10.33 per hour. This wage rate also applies to tipped workers, minors, and new employees during a 90-day training period, albeit at a smaller rate.
However, it's important to note that there could be another increase in Michigan's minimum wage later in 2024, depending on the outcome of a state Supreme Court case. Employers and employees alike should stay updated on these changes to ensure compliance and fair compensation.
Minimum Wage Eligibility and Exemptions
In Michigan, the eligibility for minimum wage and its exemptions are regulated by the Fair Labor Standard Act (FLSA) and the Michigan Workforce Opportunity Wage Act (WOWA). The FLSA applies to employers who have at least two employees and gross $500,000 or more a year. The WOWA applies to all Michigan employers who have two or more employees at any time during a calendar year.
However, there are exemptions to these wage laws. For instance, executive, administrative, professional, and outside sales employees who make at least $684 per week (annual salary of $35,578), computer professionals who make a salary of at least $684 per week or who are paid at least $27.63 per hour, certain farmworkers, and commissioned salespeople are not covered by the FLSA. The WOWA also has exemptions for executive, administrative, or professional employees who make at least $684 per week ($35,578 annually) and farmworkers.
Minimum Wage Considerations and Compliance Tips
Food business employers in Michigan state need to be aware of several key minimum wage legal and compliance considerations. Firstly, the minimum wage in Michigan has increased to $10.33 per hour. For minors aged 16 and 17, the 85 percent rate increases to $8.78 per hour. The rate for tipped employees has also increased to $3.93 per hour.
Secondly, employers can change an employee's rate of pay, provided they inform the employee before the change takes effect. However, they cannot reduce the rate of pay for hours already worked. Employers can make overtime mandatory and cannot withhold an employee's paycheck, except with written authorization from the employee. Employers are not required to pay double or triple time for holidays unless it is stated in a written contract or policy.
FAQs
- What is the current minimum wage in Michigan? The current minimum wage in Michigan is $10.33 per hour.
- Are there any exemptions to the minimum wage in Michigan? Yes, there are exemptions for executive, administrative, professional, and outside sales employees who make at least $684 per week (annual salary of $35,578), computer professionals who make a salary of at least $684 per week or who are paid at least $27.63 per hour, certain farmworkers, and commissioned salespeople.
- What is the minimum wage for tipped employees in Michigan? The minimum wage for tipped employees in Michigan is $3.93 per hour.
Information Source Links
- Michigan's Improved Workforce Opportunity Wage Act of 2018
- Michigan's Minimum Wage and Overtime law
- Wage and Hour Division Administrative Rules
- Filing a Minimum Wage or Overtime Complaint
- U.S. Department of Labor website section on employee exemptions
- Michigan Legal Help
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