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Michigan’s minimum wage increases on Jan. 1, but legal challenges remain

Michigan’s minimum wage is set to increase starting Jan. 1, 2023 for both regular minimum wage employees, tipped employees and training wages.

According to the Michigan Department of Labor and Economic Opportunity, the increases are set by the Michigan Improved Workforce Opportunity Wage Act of 2018.

The minimum wage will increase from $9.87 per hour to $10.10 per hour. The 85% rate for minors age 16 and 17 will go up to $8.59 per hour. Tipped employee rate goes up to $3.84 per hour, and the training wage stays at $4.25 per hour for new employees ages 16-19 in first 19 days of employment.

According to the state, there is pending litigation that could affect this wage increase. It includes a petition organization called One Fair Wage that looks to increase the minimum wage to $12 per hour. The legislation adopted it and amended it in 2018 putting the lower wage thresholds that put the minimum wage increase to $12.05 by 2030 instead of 2022.

The legislature’s amendment has been challenged in court as unconstitutional and the Court of Claims agreed with the decision. The Court of Claims put a stay on the decision until February 2023 to accommodate the changes required by the ruling, but the original ruling has been appealed.