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Minimum Wage and Overtime FAQ
Minimum Wage and Overtime FAQs
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Effective Date
Minimum Hourly
Wage Rate
Tipped Minimum
Hourly Rate
Tipped Reported Average
Hourly Tips
85%**
Rate
February 21, 2025 $12.48 $4.74 $7.74 $10.61 January 1, 2026 $13.73 $5.49 $8.24 $11.67 January 1, 2027 $15.00 $6.30 $8.70 $12.75 The minimum hourly wage rate of an employee eligible to be considered tipped employee shall be 38% of the minimum hourly wage rate effective February 21, 2025; beginning January 1, 2026, it shall be 40% of the minimum hourly wage rate; beginning January 1,2027, it shall be 42% of the minimum hourly wage rate; beginning January 1, 2028, it shall be 44% of the minimum hourly wage rate; beginning January 1, 2029, it shall be 46% of the minimum hourly wage rate; beginning January 1, 2030, it shall be 48% of the minimum hourly wage rate; and beginning January 1, 2031 and thereafter, it shall be 50% of the minimum hourly wage rate.
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No. Overtime requirements remain the same under the Improved Workforce Opportunity Wage Act. Nonexempt employees should be paid 1-1/2 times their regular rate of pay for hours worked over 40 in a 7-day workweek. The minimum salary compensation is $684 per week, or $35,568 per year (the current federal standard salary amount under FLSA) for those employees exempt from the overtime requirements under the Executive, Administrative and Professional employee exemption.
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The Improved Workforce Opportunity Wage Act applies to employees who work in Michigan for employers that have 2 or more employees, 16 years of age and older. Employers subject to both the state and federal minimum hourly wage rate should follow the stricter standard.
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Yes. Workers under the age of 18 may be paid 85% of the minimum hourly wage rate (see table for amount).
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Newly hired employees under 20 years old may be paid $4.25 per hour for the first 90 calendar days of employment.
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Tipped employees may be paid the amounts in the table above of the minimum hourly wage rate provided:
- Employees are informed of the tip provisions
- Employees receive and report tips
- The tips received plus the wages paid equals or exceeds the minimum hourly wage rate and if not, the employer pays the shortfall
The table above identifies the allowed tipped employee hourly wage rate for each year and the % amounts in the description by year.
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The minimum wage and overtime poster may be downloaded from the Wage and Hour Division’s
website, www.michigan.gov/wagehour, or free copies may be requested by calling 855-464-9243 (4MIWAGE). Posters are available in English, Spanish, and Arabic. -
Claims may be filed online at www.michigan.gov/wageclaim, in person at a Wage and Hour Division office, or a form may be requested by calling 855-464-9243 (4MI-WAGE). Claim forms are available in English, Spanish, and Arabic.
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Under the Improved Workforce Opportunity Wage Act, nonexempt employees should be paid 1-1/2 times their regular rate of pay for hours worked over 40 in a 7-day workweek.
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Please visit www.michigan.gov/wagehour or call 855-464-9243 (4MI-WAGE).