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What is the minimum wage in Michigan?

Federal & State Law Editorial TeamLast reviewed: 2026-04-30

Michigan minimum wage is governed by the Improved Workforce Opportunity Wage Act, MCL §§ 408.411-408.424, as restored by Mothering Justice v. Attorney General, 514 Mich. 1 (2024).

1. The Mothering Justice Decision

In July 2024, the Michigan Supreme Court ruled that the Legislature's 2018 "adopt and amend" maneuver — which adopted ballot-initiated minimum-wage and paid-sick-leave laws and then immediately gutted them in the same session — violated the Michigan Constitution. The Court restored the original initiated law (with adjusted dates).

2. Current Rates

  • Jan. 1, 2025: $10.56/hour (interim rate before Mothering Justice took effect).
  • Feb. 21, 2025: $12.48/hour (Mothering Justice effective date).
  • Feb. 21, 2026: $13.73/hour.
  • Feb. 21, 2027: $14.97/hour.
  • Feb. 21, 2028+: indexed to CPI-U.

    • 3. Tipped Wage Phase-Out

    The most controversial part of Mothering Justice — tipped wages will be phased out:

  • Feb. 21, 2025: tipped cash wage = 48% of minimum = ~$5.99
  • 2026: 60%
  • 2027: 70%
  • 2028: 80%
  • 2029: 90%
  • Feb. 21, 2030: 100% — tip credit eliminated.

    • (Note: 2025 legislation modified this phase-out somewhat. Verify current rates with the Michigan Department of Labor.)

    4. Youth Wage

    85% of standard minimum for workers age 16-17 (MCL § 408.414b).

    5. Training Wage

    $4.25/hour for first 90 days for workers under 20 (federal youth wage).

    6. Overtime (MCL § 408.414a)

  • 1.5x after 40 hours/week.
  • No daily overtime.

    • 7. Exemptions

  • Federal FLSA executive/admin/professional/outside sales exemptions apply.
  • Agricultural workers (limited).
  • Some seasonal employees.
  • Employers with fewer than 2 employees age 16+ (rare).

    • 8. Local Preemption

    MCL § 123.1385 (Local Government Labor Regulatory Limitation Act, 2015) preempts local minimum wage ordinances. Detroit and Ann Arbor cannot set higher rates for private employers.

    9. Enforcement

    Michigan Department of Labor and Economic Opportunity (LEO), Wage and Hour Division. Private right of action under MCL § 408.419 for unpaid wages + liquidated damages + attorney's fees. 3-year statute of limitations.

    This is legal information, not legal advice.

    When to Talk to a Lawyer
    • Your tipped employer pays old (pre-Mothering Justice) cash wage rates
    • Your employer claims an exemption that requires a higher Michigan salary basis
    • You want to file a class wage claim covering the post-2018 period
    Related Statutes & Laws
    • MCL § 408.412
    • MCL § 408.414a
    • MCL § 408.414b
    • MCL § 408.419
    • MCL § 123.1385

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.