All employees are legally entitled to a minimum wage, the minimum compensation a business is obligated to pay employees. In the early 20th century, most countries introduced the minimum wage law to enact employee rights that cover all companies and employees across the country.
The minimum wage may vary from country to country only for its workers. But the main fact is that it can be different in different states inside a country.
This article is based on the Michigan State Minimum Wage and other relatable content. You will get the detailed information you need on minimum wage in Michigan.
What is the Minimum Wage in Michigan?
In 2023, the minimum wage rate in Michigan is $10.10, which is $2.85 more than the federal minimum wage. It is mandated that employers having two or more workers in business must pay the minimum wage to employees.
Although most employees in Michigan are eligible for the minimum wage, some exceptions include tipped employees, workers who are engaged in exempt jobs, and minors. The minimum wage for tipped employees in Michigan is $3.84. Moreover, minors under 18 will be paid 85% of the hourly minimum wage rate which is $8.59 per hour. Also, a training wage is set at $4.25 per hour (for employees aged between 16 and 19). And this wage will be paid for the first 90 days of training.
Weekly Minimum Wage
The weekly minimum wage for an employee in Michigan is $404.00. An employee must work 40 hours a week and 52 weeks a year to earn it.
Difference Between the State Minimum Wage and the Federal Minimum Wage
According to the federal minimum wage law, it is authorized to pay a minimum wage higher than the federal minimum wage for any state employee. Besides, the federal law also directs that the state minimum wage can never be lower than the federal one.
However, state law mandates that employers who own a company with two or more employees over the age of 16 must pay their employees the minimum wage. That's why the minimum wage in Michigan is higher than the Federal Minimum wage, which is $10.10 per hour. And compared with the federal minimum wage of $7.25, the state minimum is $2.85 higher. Also, the tipped minimum wage in Michigan is higher than the federal tipped minimum wage. The federal minimum wage for tipped employees is $3.84, whereas the state minimum wage for tipped employees is $3.75.
Minimum Wage Rules and Regulations in Michigan
If an employer decides to pay his employees the minimum wage, it must be paid according to the minimum wage law, either state or federal. There are few state laws in Michigan about the minimum wage, including for employees of a tipped business, student workers, disability issues, and learners. These laws are mentioned below-
- An employer with a company of two or more employees over 16 years old must pay the employees the highest minimum wage.
- Employers are mandated to pay employees compensation which is 85% of the state minimum wage for employees who are 17 years old or younger.
- A tipped minimum wage in Michigan will be 38% of the standard minimum wage. This law also mentions that if an employee receives tips in return for any work, it shall be considered a form of honorarium or financial contribution. The employee shall be obliged to inform the employer thereof.
- Employees with a disability will be paid the subminimum wage, which is less than the standard minimum wage. A wage deviation certificate from Michigan’s Department of Consumer and Industry is required to qualify for the subminimum compensation.
- Employers must pay 18-19 years old employees who will get a subminimum wage of $4.25 per hour for the first 90 days of training. And during the training period, an employer can only hire or replace employees at a lower wage rate.
- Apprentices and student workers are to be paid a subminimum wage by employers. Employers have to submit a form to Michigan's Department of Consumer and Industry to pay the subminimum compensation.
History of Minimum Wage in Michigan
Year | Min. Wage | Wage increase | % increase |
2023 | $10.10 | $0.23 | 2.33% |
2022 | $9.87 | $0.22 | 2.27% |
2021 | $9.65 | $0 | 0% |
2020 | $9.65 | $0.20 | 2.1% |
2019 | $9.45 | $0.20 | 2.1% |
2018 | $9.25 | $0.35 | 3.9% |
2017 | $8.90 | $0.40 | 4.7% |
2016 | $8.50 | $0.35 | 4.2% |
2015 | $8.15 | $0 | 0% |
2014 | $8.15 | $0.75 | 10% |
2013 | $7.40 | $0 | 0% |
2012 | $7.40 | $0 | 0% |
2011 | $7.40 | $0 | 0% |
2010 | $7.40 | $0 | 0% |
2009 | $7.40 | $0 | 0% |
2008 | $7.40 | $0 | 0% |
2007 | $7.15 | $0.20 | 2.87% |
2006 | $6.95 | $1.80 | 34.95% |
2005 | $5.15 | $0 | 0% |
2004 | $5.15 | $0 | 0% |
2003 | $5.15 | $0 | 0% |
2002 | $5.15 | $0 | 0% |
2001 | $5.15 | $0 | 0% |
2000 | $5.15 | $0 | 0% |
Who is Exempt From Receiving Minimum Wage?
The employees of the following list are exempt from receiving the minimum wage in Michigan. This include-
- Administrative Executive
- Executive
- Employees who work as an outside salesman
- Computer Program and Software Experts.
FAQ
1. What is the overtime minimum wage in Michigan?
In 2023, the overtime minimum wage in Michigan is 1.5 times the standard minimum wage, which is $15.15 per hour. An employee must work more than 40 hours weekly to be eligible for overtime minimum wage.
2. Are all employees getting the same minimum wage in Florida?
The answer is no. Michigan sets minimum wages for employees based on age and job nature.
