Michigan’s minimum wage sets a $13.73 floor, with a $15.00 jump effective January 1, 2027.
Following the Michigan Supreme Court's 2024 Mothering Justice ruling, the state's minimum wage has been reset to its voter-approved trajectory. This means an immediate increase to $13.73 per hour, with a scheduled jump to $15.00 an hour at the start of 2027. Employers must also contend with a new tipped wage structure and the restored Earned Sick Time Act.
$13.73 State Floor + 2027 Jump to $15
Enforces $13.73 state minimum wage. Tracks accelerated phase-up: $15.00 effective Jan 1, 2027; CPI-indexed thereafter. Result of Mothering Justice ruling and SB 8.
What those rules do as a Michigan shift is created.
Teambridge's compliance engine automatically applies Michigan's complex wage rules, ensuring every shift is compliant from the moment it's logged. This includes accurate minimum wage calculations, proper tipped wage application, and adherence to the accelerated phase-up schedule.
Minimum Wage Enforcement
Automatically applies the current Michigan state minimum wage of $13.73/hour to all non-exempt hours worked. Flags and prevents shifts from being approved if they fall below this threshold, ensuring immediate compliance.
Tipped Wage Calculation
Calculates the correct tipped minimum wage of $5.49/hour (40% of the state minimum) for employees in tipped occupations, ensuring employers meet their cash wage obligations and account for tip credits accurately.
Future Wage Adjustments
Pre-programs the January 1, 2027, increase to $15.00/hour, along with subsequent CPI-indexed adjustments, so your payroll automatically adapts without manual intervention or risk of oversight.
Stop worrying about Michigan wage rules.
Let Teambridge handle the complexity of Michigan's minimum wage, tipped wage, and future adjustments. Focus on your business, not compliance.
Michigan's minimum wage trajectory is reset to voter-approved levels, with accelerated increases.
The 2024 Michigan Supreme Court ruling in Mothering Justice v. Attorney General overturned the 2018 "adopt-and-amend" legislative action, thereby reinstating the original voter-initiated laws regarding minimum wage and paid sick leave. This decision became operationally effective on February 21, 2025, significantly impacting employer obligations for 2026 and beyond.
Michigan Workforce Opportunity Wage Act (WOA), MCL 408.931 et seq. (as amended by voter initiative)
Sec. 4. (1) Subject to the exceptions specified in this act, the minimum wage paid to an employee shall be: (a) Beginning on January 1, 2026, $13.73 per hour. (b) Beginning on January 1, 2027, $15.00 per hour. (c) Beginning on January 1, 2028, and annually thereafter, the minimum wage provided in this section shall be adjusted by the percentage increase in the consumer price index for all urban consumers for the immediately preceding 1-year period.
Sec. 4. (2) The minimum hourly wage for a tipped employee shall be 40% of the minimum wage established under subsection (1) until January 1, 2029, at which point it shall increase by 10% of the minimum wage annually until it reaches 100% of the minimum wage.
Minimum Wage Adjustments and Tipped Employee Provisions
Effective January 1, 2026, the general minimum wage in Michigan is $13.73 per hour. This will increase to $15.00 per hour on January 1, 2027. Subsequent annual adjustments will be tied to the Consumer Price Index (CPI). For tipped employees, the minimum cash wage is set at 40% of the standard minimum wage, which translates to $5.49 per hour for 2026. This percentage will gradually increase to 100% by 2031, effectively phasing out the tip credit.
Federal Overlap and Enforcement
Michigan does not have a separate state overtime statute beyond referencing federal FLSA standards within the Workforce Opportunity Wage Act. Employers must also adhere to the federal exempt employee salary threshold, which is $684 per week ($35,568 annually) as of 2024. Violations of tipped wage provisions can incur civil fines of up to $2,500. The Earned Sick Time Act (ESTA), also reinstated, includes a private right of action with potential liquidated damages for employees.
Teambridge navigates Michigan's dynamic wage landscape for you.
The Mothering Justice ruling created a compliance reset, but Teambridge ensures your operations remain seamless. Our platform automatically implements the new wage floors, manages tipped wage calculations, and anticipates future adjustments, freeing you from manual updates and legal risks.
Instantaneous Wage Floor Application
As of February 21, 2025, Teambridge immediately applied the $13.73 state minimum wage for all Michigan non-exempt employees, ensuring every shift scheduled or completed after this date is compliant without any manual intervention from your team.
Accurate Tipped Employee Calculations
Our system automatically calculates the correct tipped minimum wage ($5.49/hour for 2026) and manages the gradual phase-out of the tip credit, ensuring your payroll for tipped staff is always compliant with the evolving Michigan law.
Automated 2027 and CPI-Indexed Increases
Teambridge has pre-programmed the January 1, 2027, $15.00/hour minimum wage increase and subsequent CPI-indexed adjustments. Your payroll will automatically update, eliminating the risk of human error or missed deadlines.
Holistic Michigan Compliance
Beyond minimum wage, Teambridge integrates with other Michigan mandates, including the restored Earned Sick Time Act (ESTA) and anti-retaliation provisions, providing a comprehensive compliance solution across all your state obligations.
People also ask.
What is the current minimum wage in Michigan as of 2026?
As of January 1, 2026, the current minimum wage in Michigan is $13.73 per hour for non-tipped employees. This rate was reinstated following the Michigan Supreme Court's 2024 ruling in Mothering Justice v. Attorney General.
When will Michigan's minimum wage increase to $15.00 per hour?
The minimum wage in Michigan is scheduled to increase to $15.00 per hour starting January 1, 2027. After this, annual adjustments will be made based on the Consumer Price Index (CPI).
What is the tipped minimum wage in Michigan for 2026?
For 2026, the tipped minimum wage in Michigan is $5.49 per hour. This is 40% of the standard minimum wage. The tip credit will gradually be phased out, with the tipped wage increasing annually until it reaches 100% of the standard minimum wage by 2031.
How did the Mothering Justice ruling affect Michigan's minimum wage?
The 2024 Michigan Supreme Court ruling in Mothering Justice v. Attorney General overturned a 2018 legislative "adopt-and-amend" action. This restored the original voter-initiated laws, leading to the current $13.73 minimum wage and the accelerated path to $15.00, along with changes to the tipped wage and the Earned Sick Time Act.
Does Michigan have a state overtime law?
No, Michigan does not have a separate state overtime statute beyond referencing federal FLSA standards. Employers in Michigan must adhere to federal overtime rules, typically requiring time-and-a-half pay for hours worked over 40 in a workweek for non-exempt employees.
Are there penalties for violating Michigan's minimum wage laws?
Yes. Violations of Michigan's minimum wage, particularly concerning tipped employees, can result in significant penalties, including civil fines of up to $2,500. Additionally, the reinstated Earned Sick Time Act includes a private right of action for employees, potentially leading to liquidated damages.