The Michigan state minimum wage will increase to $9.25 per hour by 2018 – made official Tuesday, May 27, 2014, with Gov. Rick Snyder’s signature on the bill. Michigan now joins 20 other states with minimum wages higher than the federal since January.
The rate increase will occur in four phases, with the first phase beginning September 1, 2014 to $8.15 per hour.
Below are the rate increases for the following three years after:
- Beginning January 1, 2016: $8.50 per hour
- Beginning January 1, 2017: $8.90 per hour
- Beginning January 1, 2018: $9.25 per hour
Tipped employees were also included in the minimum wage bill. The tipped employee minimum wage will now be 38% of the regular minimum wage – up from the current 35%.
After 2018, the Michigan state minimum wage will be tied to inflation – meaning it will gradually increase each year. The increase based on inflation will be capped at 3.5%, and if the state unemployment rate is 8.5% or higher, an increase will not occur.
With a total of 34 states considering minimum wage bills higher than the federal wage of $7.25 this year alone, eyes are on Congress to see if progress will be made on the President Obama-backed $10.10 federal wage bill.
While the federal minimum wage increase is stalled, three states have approved minimum wages to $10.10: Connecticut in 2017, Hawaii in January 2018, and Maryland in July 2018. Washington, D.C. will have the highest in the country with an increase to $11.50 by 2016. Currently, Washington State holds that title with $9.32.
