Michigan’s Department of Labor and Economic Opportunity (DLEO) has announced that the state’s minimum wage will increase twice in 2025 – first on January 1, 2025 and again on February 21, 2025 in accordance with the recent Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act (IWOWA).
Per the Michigan Bureau of Labor and Economic Opportunity, effective January 1, 2025:
- The minimum hourly wage will increase from $10.33 to $10.56 per hour.
- The 85% rate for minors under the age of 18 will increase from $8.78 to $8.98 per hour.
- The tipped employee rate of hourly pay increases from $3.93 to $4.01 per hour.
- The training wage of $4.25 per hour for newly hired employees under the age of 20 for their first 90 calendar days of employment remains unchanged.
Effective February 21, 2025 and thereafter:
| Effective Date | Minimum Hourly Wage Rate | Tipped Employee | 85% Rate | |
| Minimum Hourly Rate | Minimum Reported Average Hourly Tips | |||
| Feb. 21, 2025 | $12.48 | $5.99 | $6.49 | $10.61 |
| Feb. 21, 2026 | $13.29 | $7.97 | $5.32 | $11.30 |
| Feb. 21, 2027 | $14.16 | $9.91 | $4.25 | $12.04 |
| Feb. 21, 2028 | $14.97 | $11.98 | $2.99 | $12.72 |
On July 31, 2024, the Michigan Supreme Court ruled that the state’s legislature exceeded its authority when it amended ballot initiatives that would have increased the minimum wage more aggressively.