It was a very busy end of the year for Michigan Legislators. According to the Daily Journal, during the lame-duck session of 2018, “more than 100 bills were passed and an additional four were vetoed that were approved after the November election". For those of you who were keeping score, you may know one of these included Michigan’s minimum wage. If you are looking for clarification regarding the 2019 minimum wage in Michigan and how it impacts you, Sage Solutions Group can help!
For a quick review, here are 3 main points:
- The current minimum wage in Michigan is $9.25 per hour and it will be adjusted to $9.45 per hour on April 1, 2019. In December of 2018, Governor Snyder signed a bill which will change the minimum wage in Michigan. This information is not only important for the workers impacted but also for the employers that need to comply with the new wage minimum.
- The minimum wage rate will increase $0.20 per hour in 2020 to $9.65 per hour and then gradually increase after that until it hits a cap of $12.05 per hour in 2030. However, if the unemployment rate in Michigan is 8.5% or higher in a given year, the year following will not have an increase.
- In 2019, the tipped minimum wage will be $3.59 per hour. The tipped employee minimum wage is currently $3.52 per hour which is 38% of the minimum wage. For 2019, the percentage of tipped minimum wage will remain at 38%. Keep in mind, by law, all tipped employees should earn at least the minimum wage. If their tips plus the tipped employee minimum wage does not equal or exceed the regular minimum wage, the employer should be paying the difference, or they could face fines and penalties.
The minimum wage issue was a point of significant debate and it is anticipated that the battle will continue into 2019. In fact, there could be several lawsuits in the near future as the minimum wage bill originally passed set the 2019 minimum wage at $10.00 per hour and then increased gradually to $12.00 per hour in 2022. This bill was then changed substantially during a lame-duck session.
One of the services Sage Solutions Group offers is continuous monitoring of legislative changes. In addition, we provide our clients with an in-depth analysis of how the changes impact their business.
Should you have questions on the minimum wage in your state or need assistance with any other human resource matter, contact Sage Solutions Group at 734-855-7189 or visit our website at www.sagesolutionsgroup.com.
References: https://www.washingtonpost.com/business/michigan-house-oks-gutting-minimum-wage-paid-sick-time-laws/2018/12/04/f1704d4e-f824-11e8-8642-c9718a256cbd_story.html?utm_term=.a137fbaeebe5
https://www.michamber.com/michigan-chamber-supports-senate-changes-minimum-wage-law\
https://www.freep.com/story/news/politics/2018/12/14/minimum-wage-michigan-2019/2314166002/
http://www.dailyjournal.net/2018/12/27/mi-xgr-michigan-legislature-lame-duck-glance/