We wanted to remind everyone that the Michigan minimum hourly wage rate is changing again on January 1, 2016 due to the Michigan Workforce Opportunity Wage Act, Public Act 138 of 2014.

Tipped employees are subject to special rules – if the gratuities plus the tipped employee minimum hourly wage rate do not equal or exceed the minimum hourly wage otherwise established, the employer must pay any shortfall to the employee.

Minors 16-17 years of age may be paid 85% of the minimum hourly wage rate.

The rates are as follows:

Effective Date Minimum Hourly
Wage Rate
Tipped Employee
Hourly Wage Rate
85% of Minimum
Hourly Wage Rate
September 1, 2014 $8.15 $3.10 $7.25*
January 1, 2016 $8.50 $3.23 $7.25*
January 1, 2017 $8.90 $3.38 $7.57
January 1, 2018 $9.29 $3.52 $7.86

*If the state established 85% rate is less than the federal minimum wage, then you must pay at least the federal minimum wage of $7.25.

Please call us at Robert F. Murray & Co., CPAs, PC if you have any questions.