LANSING, Mich. (WXYZ) — The Michigan House has passed a bill that modifies the increases in the state's minimum wage laws, including tipped wages.
Under the bill, the minimum wage in Michigan will rise to $12.48 an hour on Friday. Additional increases will be phased in over the next three years until it reaches $14.97 on February 21, 2028. Two additional increases are also included through 2030, with those two set at the standard inflation adjustment.
The bill, which the state Senate has already approved, also increases the minimum wage for tipped workers to $4.74 an hour beginning Friday. It is then increased in yearly increments to $6.30 by January 1, 2027. That provision includes additional increases to the tipped minimum wage until it reaches 50% of the general minimum wage by January 1, 2031.
While the bill has passed both houses of the state Legislature, it will not head to Governor Whitmer for her signature just yet. It is tie barred to the paid sick leave legislation that the Legislature is currently negotiating and will not take effect unless that bill also passes.
Last year, the Michigan Supreme Court set a schedule for raising the minimum wage after ruling the state Legislature broke the law by adopting and amending a ballot proposal to raise Michigan's minimum wage.
Under their schedule starting Feb. 21, 2025, the rates for tipped employees will be:
- Minimum Hourly Wage Rate: $12.48
- Minimum Hourly Rate: $5.99
- Minimum Reported Average Hourly Tips: $6.49
- 85% rate: $10.61
Those numbers will then go up every year after on Feb. 21 through 2028.
- 85% Rate: Minors under the age of 18 may be paid 85% of the minimum hourly wage rate.
- Training Wage: A training wage of $4.25 per hour may be paid to employees under 20 years of age for the first 90 calendar days of employment.
For tipped employees, the rate will increase on this schedule:
- Effective Feb. 21, 2026, it will be 60% of the minimum hourly wage rate.
- Effective Feb. 21, 2027, it will be 70% of the minimum hourly wage rate.
- Effective Feb. 21, 2028, it will be 80% of the minimum hourly wage rate.
- Effective Feb. 21, 2029, it will be 90% of the minimum hourly wage rate.
- Effective Feb. 21, 2030, and thereafter, it will be 100% of the minimum hourly wage rate.
Starting in October 2028 and every October after, the state treasurer will calculate an adjusted minimum wage, increasing it by the rate of inflation. That adjusted minimum wage rate will be published by Nov. 1 and will be effective starting Feb. 21 of the following year.
If the state Legislature adopts the paid sick leave bill in addition to the minimum wage bill, those combined measures will override the Michigan Supreme Court's schedule.
