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Articles from The Insider’s Report archives go back over several years. Some articles may include date-sensitive information or other information that has changed over time.
Please consult with your advisor or Kallas Company for updated information or if you have any questions.

The new rate effective January 1, 2020 is $9.65 per hour.

Employees who regularly receive tips may be paid $3.67 per hour as long as that person is claiming at least $5.98 in tips per hour.

The law also allows a Michigan employer to pay minor employees (aged 16-18) $8.20 per hour after the first 90 days.

Kallas payroll service will make the changes automatically on your payroll but we ask that you keep an eye on it the first or second payroll in 2020 because there are always exceptions that could cause an error; especially for employees with multiple rates of pay.

If your pay period includes January 1, 2020, the law allows you to pay the lower rate through December 31.  If you choose to do this we ask that you let us know ahead of time as those adjustments will take time and are not automatic.  If you choose not to split the payroll into two minimum wage rates, the new rate will be included for the entire payroll ending at the beginning of January.

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