What is the Minimum Wage in Michigan?
What is the minimum wage in Michigan? The current state law sets the minimum wage at $9.87 an hour, but many businesses are underestimating the impact of the law. In some cases, it’s possible to make more than that. Here are some tips for small businesses in Michigan to make sure they’re compliant with the law. If you’re a Michigan business owner, contact a lawyer and accountant for more information. Then, start planning how to make more money for your employees.
The minimum wage in Michigan will increase to $9.87 an hour on January 1, 2022. This increase comes just one year after the minimum wage was reduced to $9.65 in 2008. But the state’s unemployment rate has reached the 8.5 percent mark for 2020, which prevented a scheduled increase. However, the state’s bureau of employment relations announced that the unemployment rate is unlikely to surpass that threshold, so it’s safe to assume that the minimum wage will go up.
There are some exceptions to the minimum wage law in Michigan. Those who work full-time in high schools and colleges may be paid 85% of that amount. Employers also have the discretion to pay full-time students less than minimum wage. Certain employers offer higher pay and may give tips. Even if the employee doesn’t receive tips, they must earn $9.87 per hour plus tips. Therefore, the minimum wage is not only applicable to full-time students but also those working in other sectors.
The minimum wage in Michigan is currently set at $9.65 per hour. Under federal law, states may raise the minimum wage above the federal level but not below it. Michigan’s minimum wage law has a conditional annual increase schedule and is expected to increase by a half-percentage point every year after that date. Nevertheless, the increase is not guaranteed to happen. In 2020, unemployment is forecasted to rise above 8.5 percent, which is considered a high unemployment rate.
In addition, Michigan has a history of labor laws. In the past, employees had to join unions to be eligible for minimum wage increases. However, in 2013, the state passed freedom-to-work laws, which made it possible to waive the requirement for union membership. This law also exempts certain professions from minimum wage laws. Firefighters and police officers are currently exempt from minimum wage laws. However, the law is still in place to protect their jobs.
If you’re wondering why the minimum wage in Michigan is only $10, the answer is simple: a citizen-led initiative. The Legislature can amend the law to raise it, and it has the power to do so with a simple majority vote. However, Republicans rolled back the law last year and Governor Rick Snyder has signed it into law. That means you have to go back and ask the Legislature again if they intend to raise the minimum wage.
While the federal minimum wage is $7.25 an hour, Michigan’s is still well below that. As of March, inflation has risen 6.2% in the past year – nearly 2.5 times faster than Michigan’s minimum wage. That’s why Democratic lawmakers say raising the minimum wage will help lower-income inequality and help people live better. But Republicans say the proposed legislation is likely to hurt the economy and make it more difficult to hire people.
In a lawsuit filed last month, a group of workers and advocates is suing the state of Michigan to raise the minimum wage. The lawsuit claims that state lawmakers illegally amended legislation to raise the minimum wage and that the previous attorney general allowed the changes to take effect before the laws passed. In the lawsuit, workers and advocates allege that the previous attorney general softened the laws by softening requirements for paid sick leave and paid leave.
One petition, known as the Michigan One Fair Wage, aims to raise the state’s minimum wage to $12 over the next four years. The petition has gathered more than enough signatures to be approved for the November ballot. For a sense of the potential change, it is helpful to consider the history of the previous law, Senate Bill 934. In September 2014, the minimum wage in Michigan was $7.40. In September 2015, it increased to $8.50. In 2016, it reached $8.90, and in 2018 it was $9.25.
$12 by 2022
Michigan recently increased its minimum wage to $10.85 an hour, but it is not enough to keep Michigan workers happy. Without an increase, Michigan would have the highest minimum wage in the country. That would force employers to cut hours, increase costs and invest less in employees. The state would also face worker shortages and a lack of skilled workers. That’s why the state’s business leaders are introducing new minimum wage laws to help keep workers happy.
Several state legislatures have passed minimum wage increase bills to help aspiring workers. In Michigan, the minimum wage is scheduled to reach $12 by 2022. However, the bill that passed the legislature would not automatically adjust for inflation, so workers should keep saving their money until then. It is also important to note that minimum wage increases will only increase if the unemployment rate in the state is higher than eight percent. This means that the minimum wage will only rise if the state’s unemployment rate drops below that level.
While the minimum wage is a step in the right direction, it’s far from enough to make people happy. Michigan’s minimum wage is currently less than $500 a year. Meanwhile, prices have increased by 2.5 times more than that over the past year, and more employers are offering higher wages. According to economist Paul Traub, the minimum wage hurts young adults in the service industry, students, and unskilled workers.
If you’re a business owner in Michigan, you’ll want to know that the state’s minimum wage is higher than the federal one. While the federal minimum wage is $7.25, the minimum wage in Michigan is $7.40 per hour. If you’re an employer who receives tips from your customers, you can legally pay your employees less than the state minimum wage. You should also know that the tipped minimum wage in Michigan is 38 percent lower than the standard minimum wage, meaning that you can only pay your tipped employees less than the minimum wage. In the state of Michigan, this is legal, but you must make up the difference with tips.