| Effective date | Minimum wage | Minors under 18 (85%) | Tipped cash wage |
|---|---|---|---|
| Feb. 21, 2025 | $12.48 | $10.61 | $4.74 (38%) |
| Jan. 1, 2026 | $13.73 | $11.67 | $5.49 (40%) |
| Jan. 1, 2027 | $15.00 | $12.75 | $6.30 (42%) |
Other rates: a training wage of $4.25 per hour for employees under 20 during their first 90 days of employment, and overtime at 1.5x after 40 hours in a workweek. Source: Michigan Department of Labor and Economic Opportunity (LEO), Minimum Wage and Overtime FAQ and MCL 408.934.
The Improved Workforce Opportunity Wage Act (Public Act 337 of 2018) was amended to set $12.48 from February 21, 2025, $13.73 from January 1, 2026 and $15.00 from January 1, 2027. Starting in October 2027, the state treasurer calculates a yearly inflation adjustment for the following year.
Michigan is raising the tipped cash wage as a share of the full minimum by 2 points a year: 40% in 2026, 42% in 2027, 44% in 2028, 46% in 2029, 48% in 2030 and 50% from 2031. The tip credit therefore shrinks as a share of the wage each year: $8.24 (60%) in 2026 and $8.70 (58%) in 2027.
The state law covers employees aged 16 and older who work for employers with 2 or more employees. When both the state and federal laws apply, follow the stricter standard. For breaks for minors, sick time and other Michigan rules, see our Michigan labor laws guide.
LEO lists three conditions for paying the tipped rate: employees are told about the tip provisions, employees receive and report their tips, and wages plus tips at least equal the minimum wage. If they do not, you make up the shortfall. Use the tip credit calculator to check a week, and keep tip reports with your time records.
Workers under 18 may be paid 85% of the minimum: $11.67 in 2026 and $12.75 in 2027. New hires under 20 may be paid $4.25 for their first 90 days. Keep start dates and birth dates on file so you know when each reduced rate ends. Hiring teens? Read the minimum age to work.
Non-exempt employees earn 1.5 times their regular rate for hours over 40 in a 7-day workweek. LEO notes the executive, administrative and professional exemption uses a minimum salary of $684 per week. See the FLSA overtime rules.
In 2027 the same week costs $600.00 + (5 x $22.50) = $712.50, about 9% more. For tipped staff, overtime is based on the full minimum, so each overtime hour in 2026 costs at least $20.595 minus the $8.24 tip credit, or $12.36 in cash.
| State | Basic minimum wage (Nov. 2026) |
|---|---|
| Michigan | $13.73 |
| Illinois | $15.00 |
| Minnesota | $11.41 |
| Ohio | $11.00 (larger employers) |
| Indiana, Wisconsin | $7.25 |
Figures from the U.S. Department of Labor state table, updated November 5, 2026.
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$13.73 per hour since January 1, 2026. Tipped employees get at least $5.49 an hour, and minors under 18 may be paid $11.67.
Yes. State law sets $15.00 per hour from January 1, 2027, with a $6.30 tipped wage and a $12.75 rate for minors.
Yes. New employees under 20 may be paid $4.25 per hour for their first 90 days of employment.
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Updated November 2026. Rates verified against official state sources on November 14, 2026. General information only; not legal advice.