Takeaways

• Amendments to the Michigan Minimum Wage Act accelerate the schedule of minimum wage increases but prevent elimination of the tip credit for employees who earn tips.
• Michigan’s minimum wage rate is now $12.48 per hour, pursuant to a 2/21/25 increase. The minimum wage for tipped workers is $4.74 per hour.

Related link

• Michigan Supreme Court Invalidates Legislative Amendments to Minimum Wage, Paid Sick Leave Measures

Article

The Michigan legislature amended the state’s Wage Act on Feb. 20, 2025, in a compromise measure that accelerated the schedule of minimum wage increases but staved off a complete phaseout of the tip credit for workers who receive tips. Governor Gretchen Whitmer signed the legislation, Senate Bill 8 (SB 8), on Feb. 21, 2025.

Background

In 2018, voters passed sweeping ballot initiatives sharply increasing the state’s minimum wage and abolishing the tip credit for employees who routinely earn tips. The state legislature attempted to lessen the impact of the ballot initiatives, but the Michigan Supreme Court invalidated the legislature’s efforts on procedural grounds and upheld the original ballot initiatives as passed. (See Michigan Supreme Court Invalidates Legislative Amendments to Minimum Wage, Paid Sick Leave Measures.)

The court granted a 205-day grace period expiring on Feb. 21, 2025, before its order would take effect. On Feb. 20, the legislature adopted eleventh-hour amendments to lessen the potential blow of the voter-approved statutory...

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