The Michigan State capitol

LANSING — Michigan workers will receive a boost in pay next year. On Jan. 1, the minimum wage will increase from $8.15 to $8.50 per hour. 

The change to state law is the second step of a gradual 25 percent increase that will bring the minimum wage up to $9.25 by 2018. 

The new law, known as Act 138, took effect in May 2014. It applies to employers in Michigan that have two or more employees age 16 and older. 

Under the act, an employer can pay 16 -to- 19-year old employees a training wage of $4.25 per hour for their first 90 days on the job. An employer can pay 85 percent of the minimum wage to employees aged 16 and 17. 

The act also allows employers to take a tip credit on minimum wage for employees who regularly receive tips.