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Thursday, April 9, 2026

Wage and Hour Law 101 for Employers - Lexology

Every employer and HR department has reviewed wage and hour laws, but even for the most experienced companies, a few common questions always come up.

  • How much do I have to pay?
  • What will wages look like in the next few years?
  • Does a bonus affect overtime?
  • What type of damages could I face if I don’t pay employee's properly?
  • How do I stay out of the crosshairs of the government?

Some of the answers might not be as straightforward as you’d think. Below, we’ve put together some of the most important points on the basics of wage and hour laws and what employers need to know.

Minimum wage in Michigan

Effective on January 1, 2022, the statewide minimum wage in Michigan was increased to $9.87/hour for regular hourly workers, a 22-cent raise over 2021. Exceptions to the law are for tipped workers, the rate is $3.75, as long as reported tips average $6.12, 17 and 17-year-olds, whose rate was increased to $8.39, and training wages for 16-19-year-olds for the first 90 days of their employment, which stands at $4.25/hour.

Employers are currently doing everything they can to hire staff, resulting in the average hourly wage for Michiganders being about $14/hour.

Basic hourly wages may seem simple, but countless employers across the state don’t keep up with wage changes and open themselves up to risk as a result.

Raising the wage

Raising the minimum wage has recently emerged as a prominent issue in national political circles that has also made its way into Michigan politics.

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