Minimum Wage Goes Up In Michigan Starting Jan. 1

Minimum Wage Goes Up In Michigan Starting Jan. 1

(State of Michigan, Dec. 2, 2021)

Lansing, MI- Michigan’s minimum wage rate will increase to $9.87 on January 1, 2022, an increase from the current $9.65. Michigan’s Improved Workforce Opportunity Wage Act of 2018 establishes the annual schedule and increases.

The Michigan Wage & Hour Division announced that while the law does prohibit scheduled increases when the state’s annual average unemployment rate for the preceding calendar year is above 8.5%, it is highly unlikely Michigan will exceed this threshold causing another delay as occurred in 2021.

The state’s 2021 annual unemployment rate, which is determined by the Bureau of Labor Statistics (BLS), U.S. Dept. of Labor, is calculated by using both average labor force and unemployment levels for January through December. The annual average unemployment rate for 2021 is expected to remain well below 8.5%.

Effective January 1, 2022:

  • Michigan’s minimum wage will increase to  $9.87 an hour.
  • The 85% rate for minors aged 16 and 17 increases to $8.39 an hour.
  • Tipped employees rates of pay increases to $3.75 an hour.
  • The training wage of $4.25 an hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged.

A copy of the Improved Workforce Opportunity Wage Act and related resources, including the required poster, may be obtained for free by visiting Michigan.gov/wagehour.

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