As of January 1, 2023, the Michigan minimum wage is $10.10 per hour. This increase from $9.87 per hour is part of the phased increase under state law. But there’s more to this story.
2018 Ballot Measure
In 2018, Michigan voters approved a ballot measure to steadily increase the minimum wage. This would have meant an increase to $13.03 per hour in 2023 and $11.73 per hour for tipped workers. However, lawmakers used a lame-duck session after the 2018 election to water down the wage increases, leading to lawsuits.
These lawsuits eventually reached the Michigan Court of Claims, which called the lawmakers’ change of the ballot measure an “adopt and amend maneuver” that violated the Michigan Constitution. An appeal followed, and on January 26, 2023, the Michigan Court of Appeals reversed the Court of Claims decision, finding that the maneuver was not unconstitutional.
Hourly Pay and Overtime
Regardless of the recent Michigan Court of Appeals decision, the Michigan minimum wage is higher today than last year. If you’re a minimum wage worker, your employer must raise your hourly wage to $10.10 and pay you the increased rate for every hour worked starting January 1, 2023.
This applies to overtime compensation, too. Because your hourly wage is increased, so is your overtime pay. For minimum wage workers in Michigan, your overtime pay rate jumps to $15.15 per hour (1.5 times the minimum wage). If your employer fails to pay overtime rates correctly, they could be liable to you for back pay, plus other fines and penalties.
Sommers Schwartz Continues to Monitor Michigan’s Minimum Wage
The Michigan minimum wage is a hot issue and may face additional legal challenges. Our team will stay updated on the court proceedings and report any new developments. Meanwhile, if you are being paid under the current Michigan minimum wage or paid overtime correctly, contact a Sommers Schwartz minimum wage attorney today to confidentially discuss your case and learn how we can help.
Jesse Young
Jesse Young represents clients in serious employment disputes, such as severance negotiations, discrimination, retaliation, whistleblowing activity, employment contracts, terminations, and compliance. In addition, he has appeared in hundreds of wage-and-hour lawsuits and hundreds more arbitrations arising under the Fair Labor Standards Act and similar state laws.
