Michigan’s minimum wage to increase on January 1

On January 1, Michigan’s minimum wage will increase to $9.25 per hour, up from $8.90 per hour. The increase is the third and final scheduled increase approved in 2014 by the Legislature. They started in 2016, when the minimum wage went from $8.15 per hour to $8.50 per hour.

According to the federal Bureau of Labor Statistics, Michigan had 2,614,000 hourly workers in 2014, with about 23,000 earning minimum wage. Another 76,000 earned below the minimum wage. Before the raise, a minimum wage worker would earn $356 for a 40-hour week, or $18,512 for a 52-week work schedule. Starting January 1, that worker would earn $370 for 40 hours of work, or $19,240 for 52 weeks.

Workers affected by the increase will be 18 or over and neither tipped employees nor eligible for the temporary training wage payable to those ages 16-19 for the first 90 days on a job.

Michigan is among more than two dozen states that have enacted minimum wage rates higher than the federal minimum wage of $7.25 per hour. They include California ($10), Arizona ($10) and Massachusetts ($11), along with the District of Columbia, where it increased to $12.50 on July 1.