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Federal minimum wage increase to push up Michigan's sub-minimum wage

Contact: Norm Isotalo 313-456-2939
Agency: Licensing and Regulatory Affairs

July 16, 2009 - When the federal minimum wage climbs to $7.25 an hour on July 24, it will also boost Michigan's sub-minimum wage, which is currently $6.55 an hour.

"When the higher federal minimum wage goes into effect, it will automatically cover workers who currently receive the sub-minimum wage in Michigan," Jack Finn, administrator of the state's Wage & Hour Division, said. "Thus, their sub-minimum wage will also increase to $7.25 an hour."

Michigan's sub-minimum wage is for those under 18 years of age and equals 85 percent of the state's adult minimum wage but cannot be lower than the federal minimum wage. According to federal estimates, about 2,000 Michigan workers, on average, had wages at the federal minimum wage level in 2008.

Although the federal minimum wage will increase, Michigan's minimum wage will still be higher at $7.40 an hour. The state's hourly minimum wage rose by 25 cents last year. The 2008 increase was the last of three increases approved in 2006 by the state legislature and signed into law by Governor Jennifer Granholm. The minimum wage increased to $6.95 on October 1, 2006, from $5.15, and then to $7.15 on July 1, 2007.

For more information about Michigan's minimum and sub-minimum wages, Finn suggested workers contact his agency.

"The Wage & Hour Division website is available 24/7 at www.michigan.gov/wagehour with information about the minimum wage as well as the state's minimum wage and overtime law," Finn noted. "Or individuals can call the Division and speak with staff by dialing 517-335-0400 on weekdays between 8:00 a.m. and 5:00 p.m.

"If workers are not being paid the minimum wage and believe they are entitled to the minimum, they can file a claim online by visiting the division's website, or they can call the division and request a claim form, which will be mailed to them," he added.

The Wage & Hour Division is an agency within the Michigan Department of Energy, Labor & Economic Growth.

Read more releases from the Michigan Department of Energy, Labor & Economic Growth 

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