Michigan minimum wage increases to $14.97/hour effective February 21, 2025

Michigan's minimum wage will increase to USD 14.97 per hour, effective February 21, 2025. This change applies to all covered employers and employees in the state and represents a significant increase from the current rate of USD 10.33 per hour.

Who is affected

All employers in Michigan who employ workers covered by the state's minimum wage law must comply with the new rate. This includes businesses of all sizes across all industries, with limited exceptions for specific categories of workers such as tipped employees (who have separate minimum wage requirements) and certain agricultural workers. Employees currently earning less than USD 14.97 per hour must receive wage adjustments to meet the new minimum.

What's changing

The increase stems from a 2018 ballot initiative (the Improved Workforce Opportunity Wage Act) that was initially modified by the Michigan legislature but was reinstated by the Michigan Supreme Court in July 2024. The court ruled that the legislature's amendments were unconstitutional, requiring implementation of the original initiative's wage schedule.

What NEO partners and clients should do

• Update payroll systems immediately to reflect the USD 14.97 minimum wage rate effective February 21, 2025
• Audit current employee wages to identify all workers earning below the new minimum and calculate required adjustments
• Review tipped employee compensation to ensure compliance with the new USD 5.99 cash wage minimum and tip credit rules
• Update employee communications and offer letters to reflect the new wage rates for any hires or promotions after February 21, 2025

Sources

• https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/wh-other/minimum-wage