Michigan Minimum Wage 2025: How much it will rise and tipped workers are impacted

In the highest judicial office in Michigan, a complex court dispute was ultimately resolved. It was about a legislature’s constitutional limits. However, employees and entrepreneurs will be the ones affected.

• • 
    The Michigan minimum wage will increase in February as part of a state supreme court ruling that reinstated a 2018 law that also affects workers that receive tips and paid sick time
    
  • 
    While proponents of workers and minimum wage heralded the decision, businesses are worried about their bottom line and what an increase will do to their bottom line
    
  • 
    Republicans have created a committee to address the wage increase, introducing bills to slow their rise while watering down the sick leave requirements
    

• 
  The Michigan minimum wage will increase in February as part of a state supreme court ruling that reinstated a 2018 law that also affects workers that receive tips and paid sick time
  
• 
  While proponents of workers and minimum wage heralded the decision, businesses are worried about their bottom line and what an increase will do to their bottom line
  
• 
  Republicans have created a committee to address the wage increase, introducing bills to slow their rise while watering down the sick leave requirements
  

(FOX 2):The Michigan minimum wage will increase twice: once as a result of a Supreme Court decision and once as a regularly planned increase at the start of the year.

The decision not only increases the salary but also expands paid sick leave regulations and phases out the state’s tipped wage scheme.

The state’s wage rules have been updated for years, beginning with a 2018 legislative session.

Michigan Minimum Wage

We know:

Due to its regularly scheduled increase, the minimum wage in Michigan already increased on January 1. The hourly wage increased from $10.33 to $10.56.

The second increase, to $12.48 per hour, will be more significant.

In the meantime, the minimum pay for employees who get tips will rise to $5.99 per hour.

The February raise is a result of an order from the state Supreme Court, which declared in 2024 that it was unlawful to approve a ballot initiative pertaining to the minimum wage before changing the extent to which it would change Michigan’s worker payment regulations.

The ruling mandated that the state restore the wage rise to the schedule specified in the 2018 election initiative.

Proponents of raising the state wage viewed the ruling as a significant win for small firms and workers alike.

The backstory

A ballot initiative to increase Michigan’s minimum wage was scheduled to be presented to voters in 2018.

However, the Republican-majority legislature chose to immediately enact the measure into law rather than letting it appear on the November midterm ballot.

The legislature then softened the idea during the lame duck session, which was the time after election day but before the start of the next governing session.

It took years for the legal case involving the decision to proceed through the court system. The Democratic-led high court ultimately declared the ruling to be unlawful.

The idea eliminated the existing tip-paying system for employees and raised paid sick leave in addition to modernizing the state’s minimum wage.

Based on the figures:

Beginning in February, Michigan will raise the minimum wage in accordance with a yearly increasing plan. The rate will increase by over $2 as a result.

Through 2028, the state has set up a timeline.

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  Feb. 21, 2025 – Rising to $12.48 an hour
  
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  Feb. 21, 2026 – Rising to $13.29 an hour
  
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  Feb. 21, 2027 – Rising to $14.16 an hour
  
• 
  Feb. 21, 2028 – Rising to $14.97 an hour
  

The hourly wage for tipped employees will also rise. By 2030, tipped workers will earn 100% of the minimum wage, according to the Michigan Treasury.

• 
  Feb. 21, 2025 – Tipped wage will be $5.99
  
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  Feb. 21, 2026 – Tipped wage will be $7.97
  
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  Feb. 21, 2027 – Tipped wage will be $9.91
  
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  Feb. 21, 2028 – Tipped wage will be $11.98
  

The opposing viewpoint:

The business community is concerned about the financial effects that boosting the salaries will have on their bottom line, even if labor groups and those who have advocated to raise the minimum wage applauded the decision.

After conservatives regained control of the Michigan House, Republicans who are more receptive to the business community are anticipated to discuss the planned hike during their session in Lansing this year.

As part of it, a new committee will be formed with the pledge to “fix” the state’s tip credit structure.

“Innumerable diligent small business owners and their committed staff have shared their thoughts with us regarding the implications of this decision. State Representative Jay DeBoyer (R-Clay Township) stated that it would be disastrous.

Bill Schuette, a Republican from the Midland, will serve as the chair of the “Select Committee on Protecting Michigan Employees and Small Businesses.”

The House GOP has sponsored a number of proposals in their first week of office that have an effect on the state high court’s decision, such as one that would maintain the 38% tipped wage rate.

• This narrative was based on information from the Michigan House Legislature, the Michigan Supreme Court, and the Michigan Treasury.

This narrative was based on information from the Michigan House Legislature, the Michigan Supreme Court, and the Michigan Treasury.