Labor & Employment

SB 8 increases Michigan's minimum hourly wage to $12.48 starting February 21, 2025, with annual raises through 2030 (reaching $15.00 by 2027). It also adjusts the wage annually based on inflation starting in 2027, unless unemployment exceeds 8.5%. The bill includes a provision for tipped workers, allowing employers to pay a lower base wage (starting at 38% of the standard rate in 2025 and rising to 48% by 2030) if workers earn sufficient tips that cover the difference. This directly affects hourly workers and businesses employing them, requiring employers to comply with updated wage rates and tip-sharing rules.

HB 4001 updates Michigan's minimum wage schedule, setting new rates that increase to $12.00 per hour starting February 21, 2025, and reaching $15.00 by 2029. It replaces the previous 2018 law (PA 337) and adds an annual adjustment mechanism: starting in 2019, the wage will rise each January based on Midwest-region inflation data, capped at 3.5% per year. The bill also modifies youth wage rules, allowing employers to pay new workers under 20 a training rate of 75% of the minimum wage for their first 90 days, while prohibiting displacement of existing workers to hire at this lower rate. This directly affects all hourly workers in Michigan covered by state minimum wage laws, including young workers and employers subject to wage requirements.