As of September 1, 2014, the minimum hourly wage in Michigan will increase to $8.15 and tipped employees will be $3.10. January 1, 2016, the minimum wage will be $8.50 and $3.23 for tipped employees, and will increase annually until 2018.

Minors 16-17 years old may be paid 85% of the minimum wage. However, 85% of Michigan’s mimimum wage is less than the federal minimum wage (see below). Therefore, minors should be paid the federal minimum wage until January 1, 2017.

Several states have increased their minimum wage. Employers with workers in multiple states will want to make sure they are using the current minimum hourly wage for each state.

Employers who use a payroll service provider or prepares their payroll in-house, will want to be sure the wage increase is implemented in September 2014. Of course, all HAS payroll clients will be contacted personally regarding this change. 

The federal minimum hourly wage is $7.25. However, Michigan employers are required to pay the higher of the federal or state mimimum hourly wage.