On Jan. 1, Michigan's minimum wage will increase from $9.87 to $10.10 per hour, as set by Michigan's Improved Workforce Opportunity Wage Act of 2018, establishing the annual schedule of increases.

Effective Jan. 1:

But, according to a Department of Labor and Economic Opportunity statement, there is pending litigation that could push the minimum wage increase even higher.

In 2018, a petition initiative organized by One Fair Wage sought to allow voters to decide on raising Michigan’s minimum wage to $12 an hour by 2022 — and raise the minimum wage for tipped workers to 80% of the standard minimum wage in 2022, 90% in 2023 and ultimately match it in 2024.

The Michigan Legislature adopted the legislation and amended it in 2018, putting in lower wage thresholds that increased the minimum wage to $12.05 by 2030 instead of 2022, and kept the tipped minimum wage at 38% of the standard one. As a result, the state's current hourly minimum wage is $9.87 and $3.75 for workers who are expected to make up the difference in tips.

The Legislature’s amendment has been challenged in court as unconstitutional. On July 19, 2022, the Court of Claims issued a decision that agreed with that challenge and voided the amended versions of the Michigan Improved Workforce Opportunity Wage Act and Paid Medical Leave Act in favor of their original, unamended versions.

On July 29, 2022, the Court of Claims entered an order staying the effect of this decision until Feb. 19, 2023, to give employers and the relevant state agencies time to accommodate the changes required by the ruling.

The Court of Claims’ ruling has been appealed. Pending final resolution of the appeal, and lifting of the stay, under the potential implementation of the originally adopted petition, the minimum wage rate for 2023 would be $13.03 and $11.73 for tipped employees.

For further information regarding the pending minimum wage litigation, and potential amended minimum wage rates as a result of that litigation — or a copy of the Improved Workforce Opportunity Wage Act and related resources, including the required poster — visit michigan.gov/wagehour.

Source: Michigan Farm Bureau