Rick Snyder, Governor of Michigan, signed the “Workforce Opportunity Wage Act” into law on Tuesday May 27, 2014. Michigan employers subject to the Minimum Wage Act will be required to pay employees more come September 1, 2014. The minimum wage rate increases incrementally by $1.85 over four years. Currently the minimum wage is $7.40 per hour. The first increase, effective September 1, will bring the wage rate to $8.15 per hour. The subsequent increases are as follows:
- January 1, 2016 – $8.50 per hour
- January 1, 2017 – $8.90 per hour
- January 1, 2018 – $9.25 per hour
Beginning January 1, 2019, increases in the minimum wage rate will be adjusted according to the rate of inflation or 3.5%, whichever is lower. On September 1, 2014 tipped employees will have a rate that is 38% of the minimum wage, or about $3.51 an hour.
Under the Michigan Minimum Wage Law, an employer means a person, firm, or corporation and a person acting in the interest of the employer who employs two (2) or more employees at any one time within a calendar year. This includes the state and its political subdivisions and agencies.
Since Michigan’s 2014 legislative session does not end until approximately December 31, 2014, there is still plenty of time for Governor Snyder to sign additional employment-related bills. Compliance Poster Company’s Human Resource and Compliance Team is tracking Michigan legislation as legislators head into the latter half of the session. Any further developments will be discussed in our blogs. Stay tuned for updates to Michigan Labor Law products.