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UNDATED, Mich. -- Starting tomorrow (January 1), Michigan's minimum wage will rise from $12.48 to $13.73 per hour. This increase is part of the Improved Workforce Opportunity Wage Act, signed by Governor Gretchen Whitmer in February. The new law aims to gradually raise the minimum wage to $15 per hour by January 1, 2027. Future increases will be tied to inflation.
The wage hike also affects tipped workers, whose pay will increase by 40%, although it is less than initially planned. The sub-minimum wage for tipped employees will go from $4.74 to $5.49 per hour, a reduction from the $7.97 that was initially scheduled under a court order. The minimum wage for minors will also rise from $10.61 to $11.67 per hour.
The Michigan Supreme Court's 2024 ruling prompted these changes, as it found that the legislature had violated the state constitution by amending initiated legislation in the same term. This decision led to the current wage increase schedule, which was solidified in a bipartisan agreement earlier this year.
Business owners, particularly in the restaurant industry, express concerns about the impact of higher wages on their operations. Justin Winslow, president of the Michigan Restaurant and Lodging Association, noted that some businesses might reduce labor or increase prices to cope with the changes. However, others, like Steven Dyme of Flowers for Dreams, argue that the increase is overdue, considering the rising cost of living.
The wage increase is expected to benefit Michigan's lowest-paid workers, though it presents challenges for some businesses. As the state moves toward a $15 minimum wage, the focus will remain on balancing worker benefits with business sustainability.
