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Michigan Enacts Gradual Minimum Wage Increase to $9.25/Hour

May 28, 2014

On May 27, 2014, Michigan enacted a law that will gradually increase the minimum wage from its current $7.40 to $9.25 per hour by January 1, 2018. For tipped employees, the rate will eventually increase from $2.65 to 38 percent of the regular minimum wage.

The minimum wage will increase in four stages over the next 3 ½ years: to $8.15 on September 1, 2014, to $8.50 on January 1, 2016, to $8.90 on January 1, 2017, before reaching $9.25 on January 1, 2018. Beginning January 2019, annual future increases will be tied to inflation and become effective each April, in an amount not to exceed 3.5 percent.