LANSING — Although the federal minimum wage remains at $7.25 per hour, Michigan’s minimum wage rate increased from $9.65 to $9.87 on Jan. 1, 2022, as required by the Michigan Improved Workforce Opportunity Wage Act of 2018.
According to the Michigan Wage and Hour Division, while the law does prohibit scheduled increases when the state’s annual average unemployment rate for the preceding calendar year is above 8.5%, it is highly unlikely Michigan will exceed this threshold causing another delay as occurred in 2021.
The state’s 2021 annual unemployment rate, which is determined by the U.S. Bureau of Labor Statistics within the U.S. Dept. of Labor, is calculated by using both average labor force and unemployment levels for January through December.
According to the Michigan Dept. of Technology, Management and Budget, the state’s unemployment rate dropped slightly in November to 5.9%, down from 6.1% in October, leading most to believe the 2021 annual average unemployment rate will remain below the 8.5% threshold.
As such, effective Jan. 1, 2022:
• 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 increase to $3.75 an hour (but guaranteed to make the full minimum wage when you add wages plus tips).
There are few exemptions to the state minimum wage requirements, says Michigan Farm Bureau Regulatory Relations Specialist Craig Anderson, although there is a training wage of...
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