Michigan’s Minimum Wage To Increase On Jan. 1 – 9 & 10 News

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Michigan’s minimum wage rate will be increasing from $9.65 to $9.87 on Jan. 1, announced the Michigan Department of Labor and Economic Opportunity Thursday.

According to the department, the state’s Improved Workforce Opportunity Wage Act of 2018 establishes the annual schedule and increases.

They say the Michigan Wage and Hour Division announced that although the law does prohibit scheduled increases when Michigan’s annual average unemployment rate for the preceding calendar year is above 8.5%, it is unlikely that the state will exceed this threshold, causing another delay as occurred this year.

Michigan’s 2021 annual unemployment rate, which is determined by the Bureau of Labor Statistics, the U.S. Department of Labor, is calculated by using both the average labor force and unemployment levels for Jan. through Dec.

The Michigan Department of Labor and Economic Opportunity says the annual average unemployment rate for 2021 is expected to remain below 8.5%.

The department states the following will go into effect beginning Jan. 1:

Michigan’s minimum wage will increase to $9.87 an hour.
The 85% rate for minors aged 16 and 17 increases to $8.39 an hour.
Tipped employees rates of pay increases to $3.75 an hour.
The training wage of $4.25 an hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.

To view the Improved Workforce Opportunity Wage Act and related resources, click here.