Michigan minimum wage 2026
The minimum wage in Michigan is $13.73 an hour in 2026, rising to $15.00 on January 1, 2027. Michigan's rate comes from 2025 Public Act 1, which ended years of litigation over a 2018 ballot initiative by fixing three steps: $12.48 on February 21, 2025, $13.73 in 2026 and $15.00 on January 1, 2027. From 2028 the rate follows Midwest inflation, and tipped workers' cash wage climbs slowly toward half the minimum.
Contents12 sections
At a glance
| Minimum wage now | $13.73 an hour, since January 1, 20261382 |
|---|---|
| Next change | $15.00 on January 1, 2027 (set in law)812 |
| Tipped employees | $5.49 cash wage, tip credit up to $8.24823 |
| Overtime | 1.5 times the regular rate after 40 hours a week10 · details |
| Full-time pay | $549 a week, $28,558 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | Michigan Department of Labor and Economic Opportunity, Wage and Hour Division, 855-464-9243 |
What to know about the Michigan minimum wage
Michigan's rates from 2025 to 2027 are the product of a long legal fight. In 2018 the Legislature adopted a citizen-initiated minimum wage proposal and amended it in the same session, a move that was challenged in court for years; 2025 Public Act 1 followed that litigation.8 That law took effect February 21, 2025, raising the wage that day from $10.56 to $12.48, then to $13.73 on January 1, 2026, and fixing $15.00 for January 1, 2027. It only took effect together with changes to the earned sick time law.
The same law reshaped tipped pay. Instead of moving tipped workers up to the full minimum wage, it raises their cash wage two percentage points a year, from 38% of the minimum in 2025 to 40% ($5.49) in 2026, 42% ($6.30) in 2027 and 50% from 2031.8 A tip credit is allowed only if the employee reports tips, keeps them apart from voluntary sharing with non-managerial service staff, and agreed in writing at hire. Minors aged 16 and 17 may be paid 85% of the minimum, $11.67 in 2026.3
After 2027, the State Treasurer will adjust the rate each year for Midwest inflation, publishing the figure by November 1, but no increase takes effect if Michigan's unemployment rate was 8.5% or higher the previous year. Workers who are underpaid can file a claim with the Department of Labor and Economic Opportunity or sue within three years.2
All 2026 rates
Adults 18 and older get the full rate. Minors aged 16 and 17 may be paid 85% of it, $11.67 in 2026, and new hires under 20 may be paid $4.25 for their first 90 days. Tipped workers receive a cash wage of 40% of the minimum in 2026, $5.49, as long as tips make up the rest.
| Rate | Applies to | Per hour |
|---|---|---|
| State minimum | Employees 16 and older of employers with two or more employees$15.00 from January 1, 2027812 | $13.731382 |
| Minors aged 16 and 17 | 85% of the minimum wage. Rises to $12.75 on January 1, 2027. | $11.6723 |
| Training wage, new hires under 20 | May be paid for the first 90 calendar days of employment. | $4.2523 |
Tipped employees
| Tip credit | Allowed |
|---|---|
| Minimum cash wage | $5.49 an hour823 |
| Maximum tip credit | $8.24 an hour |
Employers may pay tipped workers 40% of the minimum wage ($5.49) in 2026 and 42% ($6.30) in 2027, rising two points a year to 50% in 2031. The employee must report tips, keep them apart from voluntary sharing with non-managerial service staff, and have agreed in writing to the arrangement at hire.
An employer that takes a tip credit must make up the difference whenever wages plus tips fall short of the full minimum wage for the workweek. See the tipped minimum wage guide.
Overtime and salaried staff
| Weekly overtime | After 40 hours in a workweek, at 1.5 times the regular rate10 |
|---|---|
| Daily overtime | None in state law |
| Exempt salary | The federal level, $684 a week ($35,568 a year) |
Time and a half after 40 hours a week under the Improved Workforce Opportunity Wage Act, which covers employers of two or more employees; because the state minimum wage exceeds the federal rate, the state law also applies to FLSA-covered employers.
Overtime at the minimum wage of $13.73 is $20.595 an hour. Salaried managers, administrators and professionals are exempt from overtime only if they meet the duties tests and are paid at least the exempt salary. See overtime rules in every state or calculate pay with overtime.
How the rate changes
The 2025 law sets $15.00 for January 1, 2027. After that, the State Treasurer adjusts the rate each January 1 by the yearly rise in the Midwest Consumer Price Index for All Urban Consumers (CPI-U), announcing it by November 1; the first indexed rate takes effect January 1, 2028. No increase takes effect if the state unemployment rate was 8.5% or higher the year before.
The $15.00 rate for January 1, 2027 is set in MCL 408.934; the same day the minor rate becomes $12.75 and the tipped cash wage $6.30.
Indexed to inflation: yes. Rises to $15.00 on January 1, 2027, then is adjusted each year by a set inflation formula.10
Rate history
| Effective | Status | Per hour |
|---|---|---|
| January 1, 2027 | Set in law Last fixed step before indexing | $15.00812 |
| January 1, 2026 | In effect now | $13.731382 |
| February 21, 2025 | 2025 Public Act 1 takes effect | $12.48827 |
| January 1, 2025 | $10.566 | |
| January 1, 2024 | $10.334 | |
| January 1, 2023 | $10.105 | |
| January 1, 2022 | $9.875 |
Who is covered
The Improved Workforce Opportunity Wage Act covers employers with two or more employees, including state and local government, for workers 16 and older. Exemptions include summer camp staff for up to four months, workers under federal section 14 certificates and some piece-rate harvest workers; non-live-in companionship and child care workers are covered.
- The wage rose twice in 2025: to $10.56 on January 1 under the earlier law, and to $12.48 on February 21 when 2025 Public Act 1 took effect.
- The 2025 law replaced a plan to phase out the tipped subminimum completely; the tipped share stops at 50% of the minimum wage in 2031.
- Service charges do not count as wages, and employers must explain in writing how they are distributed.
- Overtime is one and a half times the regular rate after 40 hours in a seven-day workweek.
- Employees can file a claim with the Department of Labor and Economic Opportunity or sue within three years; employers must display the state minimum wage poster.
Cities and counties
Michigan bars local governments from requiring employers to pay more than the state minimum wage (Local Government Labor Regulatory Limitation Act, MCL 123.1385).
Largest cities in Michigan
- DetroitState $13.73
Cities of Michigan among the 50 most populous in the US (U.S. Census Bureau, Vintage 2025 estimates for July 1, 2025). “Local” marks a city with its own minimum wage, “Regional” a state wage region, and “Federal rate” a city where the federal $7.25 is the rate that applies.
Neighboring states
If you live near a state line, the rate that applies is the one where you do the work, not where you live or where the employer is based.
| State | Per hour now |
|---|---|
| Ohio | $11.00 |
| Indiana | $7.25 |
| Wisconsin | $7.25 |
Compare every state on the ranked list and map.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | Michigan Department of Labor and Economic Opportunity, Wage and Hour Division |
|---|---|
| Phone | 855-464-9243 |
| The law | Improved Workforce Opportunity Wage Act, 2018 PA 337 (MCL 408.931 et seq.); MCL 408.934 (minimum hourly wage rate); 2025 PA 1 (Enrolled Senate Bill 8); MCL 123.1385 (local wage preemption) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
- 1 Michigan Department of Labor and Economic Opportunity, Minimum Wage & Overtime Checked Oct 9, 2026 · Back to text ↑
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- 8 Michigan Legislature, Public Act 1 of 2025 (Enrolled Senate Bill No. 8) Checked Oct 9, 2026 · Back to text ↑
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