Michigan workers who earn minimum wage – whether on regular pay or a tipped pay scale – will see a pay increase effective Jan. 1, 2026. 

A flurry of court decisions, followed by legislative action, resulted in specific rate increases dictated for 2026 and 2027. The final version is under Senate Bill 8, which was signed in February by Michigan Gov. Gretchen Whitmer. Future adjustments will be made year-to-year, based on inflation. 

Michigan is among the states that have set a minimum wage well above the federal minimum wage. The federal minimum wage for most employee-status jobs is $7.25 an hour, according to the U.S. Department of Labor, an amount that was set in 2009. 

Minimum wage pay amounts

Michigan's current minimum wage is $12.48 an hour, which began in January.  The minimum wage in Michigan becomes $13.73 an hour effective Jan. 1, 2026, and will be $15 an hour effective Jan. 1, 2027.  

There are some job categories that are considered tipped work, where customer tips cover part of the earned pay. Michigan's current tipped minimum wage is $4.74. Employees who are paid under the tipped minimum wage rule will see their minimum wage set at $5.49 on Jan. 1, and $6.40 on Jan. 1, 2027. 

Exceptions with lower wages can be made for workers under the age of 18, or those under the age of 20 who might temporarily be given a training wage. 

Overtime rules in Michigan remain the same, requiring that employers pay nonexempt employees 1 ½ times their regular rate of pay for hours worked over 40 in a seven-day work week.  

Earned sick leave

A related bill, House Bill 4002, expands paid sick leave policies and prevents employers from requiring their workers to find their own replacements if they are ill. The State of Michigan says the new rules that took effect in February require paid sick leave for most employees. A combined paid time off policy could be used to apply to that requirement. 

Small businesses with 10 or fewer employees were not required to comply with Michigan's paid sick leave requirements until October 1. 

History of the minimum wage increases

The pending increases to Michigan's minimum wage resulted from years of legal wrangling and legislative negotiations. 

A petition drive during 2018 was intended to increase the basic minimum wage amount every year until it reached $12 in 2022, and then be pegged to inflation. 

The discussions included financial impacts on smaller businesses whose employees would see automatic pay raises under the pending rules. 

The above video originally aired Feb. 21, 2025.