LANSING, Mich. – On January 1, 2023, Michigan's minimum wage rate will increase from $9.87 to $10.10 per hour as set by Michigan's Improved Workforce Opportunity Wage Act of 2018 establishing the annual schedule of increases.

Effective January 1, 2023:

• The minimum hourly wage will increase to $10.10 per hour.
• The 85% rate for minors aged 16 and 17 will increase to $8.59 per hour.
• The tipped employee rate of hourly pay increases to $3.84 per hour.
• The training wage of $4.25 per hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.

There is pending litigation that might affect this minimum wage increase:

• In 2018, a petition initiative organized by One Fair Wage sought to allow voters to decide on raising Michigan’s minimum wage to $12 an hour by 2022 and raise the minimum wage for tipped workers to 80% of the standard minimum wage in 2022, 90% in 2023 and ultimately match it in 2024.
• The Legislature adopted the legislation and then amended it in 2018, putting in lower wage thresholds that increased the minimum wage to $12.05 by 2030 instead of 2022 and kept the tipped minimum wage at 38% of the standard one. As a result, the state's current hourly minimum wage is $9.87 and $3.75 for workers who are expected to make up the difference in tips.
• The Legislature’s amendment has been challenged in court as unconstitutional. On July 19, 2022, the Court of Claims issued a decision that agreed with that challenge and voided the...

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