As part of a larger plan, Michigan’s minimum wage was set to increase on New Year’s Day. The first step called for a 23-cent increase on Wednesday, Jan. 1.
However, the hourly minimum wage in Michigan will see two increases in 2025, though concerns still loom from some business owners and employees who fear higher wages could be a detriment, especially for tipped workers.
Tipped workers are currently paid full minimum wage if their base pay and tips don’t meet or exceed the minimum wage.
A second increase stems from a years long court battle which culminated over the summer.
The Michigan Supreme Court ruled in July the state legislature did not have the authority in 2018 to adopt and then amend language from a petition initiative which sought to increase minimum wage to $12 an hour by 2022 and eventually eliminate the tipped minimum wage.
Proponents say eliminating tipped wages and increasing the minimum wage will offer workers more stability and livable earnings.
Opponents — such as the Small Business Association of Michigan, restaurant owners and Republican lawmakers — say the changes reduce tipped worker earnings, put jobs and businesses at risk and drive up prices for customers. Some fear the higher minimum wage for tipped workers will lead to customers tipping less.
The increase process will eventually see minimum wage earners making $14.97 an hour in 2028 and tipped workers earning full minimum wage as their base pay starting in 2030.
Following the 2028 minimum wage increase, minimum wage will continue to rise Feb. 21 every year, with those increases calculated by the state treasurer and based on inflation.
Tipped workers will earn 90 percent of the minimum wage starting in 2029. In 2030, they’ll start earning full minimum wage as their base pay.
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