Michigan Minimum Wage Increases Effective January 1, 2026
12/17/25
Effective January 1, 2026, Michigan’s minimum wage rate increases from $12.48 to $13.73 per hour. We previously discussed Michigan’s Improved Workforce Opportunity Wage Act (“IWOWA”) in a February 21, 2025 publication (available here).
Changes that take effect on January 1 and cover nearly all Michigan employees include the following.
Minimum Hourly Wage:
- Increases from $12.48 to $13.73 per hour.
Minor Hourly Wage:
- The 85% rate for minors (workers between 16 and 18 years old) increases from $10.60 to $11.67 per hour.
Tipped Hourly Wage:
- Increases to $5.49 per hour, (40% of the full minimum wage), provided the employee receives at least $8.24 per hour in tips.
- Reminder: Tipped employees must 1) be informed of their employer’s tip provisions, 2) receive and report tips, and 3) receive equal to or above the minimum wage rate by combination of tips and minimum hourly rate (or the employer must pay the shortfall).
Training Hourly Wage:
- The $4.25 per hour wage rate for newly hired employees under the age of 20 for their first 90 calendar days of employment remains unchanged.
Who is covered?
- IWOWA applies to employees who work in Michigan for employers with two or more employees, 16 years of age and older.
- Employers subject to both federal and state minimum hourly wage rates should follow the stricter (in this case, Michigan’s) hourly wage rate.
Additional minimum wage increases will become effective in January of 2027. Stay tuned for the specifics. Please contact the author or any member of Bodman’s Workplace Law Group if you have questions regarding any of the information above. Bodman cannot respond to your questions or receive information from you without establishing an attorney-client relationship and clearing potential conflicts with other clients. Thank you for your patience and understanding.