Michigan will have a new minimum wage of $9.45 an hour with tipped minimum wage increasing to $3.59 an hour. This will be starting on March 29, 2019.
That’s an increase of 20 cents. The state’s current minimum wage is $9.25. For tipped employees, the increase is $0.07.
For 2020 through 2030, further scheduled increases average about $0.22 per hour per year, although final numbers have not been published to date.
Michigan is one of 20 states that will see an increase in the minimum wage in 2019. The federal minimum wage is $7.25 an hour.
Just like the Medical Leave Act voted into law in December 2018, the Legislature circumvented the statewide ballot initiative and passed the initiative themselves thereby allowing them to amend the law later. The original ballot initiative eliminated the tip credit completely and increased the minimum wage to $10 in 2019 and $12 in 2022. Elimination of the tip credit would have been devastating to the restaurant/bar industry.