Effective the first of 2017, Michigan workers will experience an increase in minimum wage rate from $8.50 to $8.90 – the third step in a gradual increase that will ultimately result in a $9.25 minimum wage in 2018.
This is all due to Public Act 138 the Workforce Opportunity Wage Act (WOWA) of 2014 which came into effect in late May of 2014, replacing the Michigan Minimum Wage and Overtime Act (Act 154).
There are also stipulations in place allowing for a Youth Training Wage and an 85% Minimum Wage.
The former allows for an employer to pay new employees between the ages of 16 and 19 a “training wage” of $4.25/hour for up to the first 90 days of employment.
The 85% Minimum Wage, on the other hand, gives employers permission to pay employees aged 16 or 17, 85% of the minimum wage. Effectively, that would mean $7.57 in 2017 and $7.86 in 2018.
WOWA also provides stipulations regarding tipped employees, which are detailed in the full report from LARA.
For full details, read the LARA report here.
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