What Is the Current Minimum Wage in Michigan?

The current minimum wage in Michigan is $13.73 per hour, effective January 1, 2026.¹ That rate applies to most non-exempt employees working for a Michigan employer with two or more employees. Tipped workers, employees under 18, and new hires under 20 can be paid less under specific conditions set by state law.

The rate comes from the Improved Workforce Opportunity Wage Act (Act 337 of 2018). After a 2024 Michigan Supreme Court ruling and follow-up legislation in Senate Bill 8, the wage climbed to $12.48 on February 21, 2025, then to $13.73 on January 1, 2026.² Employers are required to post the current rate somewhere employees can see it.³

Rates That Differ From $13.73

Three groups of workers can legally be paid less than the standard minimum wage in 2026.

Tipped employees. Workers who regularly receive gratuities can be paid $5.49 per hour, which is 40% of the standard rate.³ Tips have to bring total hourly earnings up to at least $13.73. If they fall short in a pay period, the employer must cover the gap. The tipped percentage is scheduled to rise 2 points each year, reaching 50% of the standard wage in 2031.

Minors under 18. Employees under 18 can be paid 85% of the standard rate, which is $11.67 per hour in 2026.⁴ They move to the full adult rate on their 18th birthday.

New hires under 20. For the first 90 days of employment, workers under 20 can be paid a training wage of $4.25 per hour. After day 90, they must receive the applicable state minimum wage.³

When the Rate Changes Next

The standard minimum wage is scheduled to rise to $15.00 per hour on January 1, 2027.¹ After that, the state treasurer begins calculating an annual inflation adjustment tied to the Midwest Consumer Price Index, with the new figure taking effect each January. The automatic increase is suspended for any year following one in which Michigan’s unemployment rate hit 8.5% or higher.²

Overtime Pay

Non-exempt employees earn 1.5 times their regular hourly rate for every hour worked past 40 in a single workweek.¹ Overtime is counted weekly, not daily. A long shift on one day does not trigger overtime unless the weekly total crosses 40 hours.

Salaried employees can be exempt from overtime if they meet the duties tests and earn at least $684 per week, or $35,568 per year. Michigan currently follows the federal Fair Labor Standards Act salary threshold.⁵

Who Isn’t Covered

The Improved Workforce Opportunity Wage Act defines an employer as a business with two or more employees at some point during the calendar year. A business that never employs more than one person is outside the law. Workers exempt under the federal Fair Labor Standards Act are generally also exempt from Michigan’s rate, unless the state rate is higher.³

Common exemptions cover high-level executives, administrative professionals, and certain agricultural workers. Independent contractors aren’t covered at all, because they aren’t employees under the law. When classification is disputed, federal enforcers apply an “economic reality” test that weighs factors like employer control and the worker’s own profit-and-loss risk.⁶

If You’re Being Paid Less Than $13.73

You can file a complaint with the Michigan Department of Labor and Economic Opportunity’s Wage and Hour Division. The filing deadline for non-payment of wages is 12 months from the violation.⁷ An employer who underpays can be ordered to pay the unpaid difference, an equal amount in liquidated damages, and the employee’s court costs and attorney fees.³

Retaliation is treated separately. If your employer fires you or cuts your pay after you file, you have 30 days to file a retaliation complaint with the state.⁷ The Fair Labor Standards Act also protects employees who complain, cooperate with an investigation, or testify about violations, whether the complaint was verbal or written. Retaliation victims can file with the federal Wage and Hour Division or sue for reinstatement, lost wages, and equal liquidated damages.⁸

1
State of Michigan. LEO – Minimum Wage and Overtime
2
Michigan Legislature. MCL Section 408.934
3
Michigan Legislature. Improved Workforce Opportunity Wage Act – Act 337 of 2018
4
State of Michigan. Michigan’s Minimum Wage Set to Increase on Jan. 1, 2026
5
State of Michigan. The Improved Workforce Opportunity Wage Act FAQ
6
U.S. Department of Labor. Earnings Thresholds for the Executive, Administrative, and Professional Exemption
7
State of Michigan. Filing a Complaint for Non-Payment of Wages or Fringe Benefits
8
U.S. Department of Labor. Fact Sheet 77A – Prohibiting Retaliation Under the Fair Labor Standards Act