Michigan Minimum Wage 2026: Current Rates and Requirements

Quick Answer: Michigan's minimum wage is $12.48/hour as of February 21, 2026, with scheduled increases. Tipped employees receive $4.74/hour minimum cash wage (38% of standard minimum). Michigan's rates are above federal minimum wage ($7.25) and set to increase annually. The Improved Workforce Opportunity Wage Act governs these rates.

Michigan wages exceed federal minimums.

Current Rates

Standard Minimum Wage

2026 rate (as of February 21, 2026):

• $12.48 per hour
• Above federal $7.25
• Scheduled to increase

Tipped Employees

2026 tipped rate (as of February 21, 2026):

• $4.74/hour cash wage (38% of standard minimum)
• Tips must bring total to $12.48
• Employer makes up difference

Youth/Training Wage

Limited exception:

• $4.25/hour for under 20
• First 90 days only
• Then full minimum applies

Scheduled Increases

Rate Trajectory

Increases planned:

• Annual adjustments scheduled
• Based on inflation index
• Check michigan.gov for updates

Inflation Adjustments

How determined:

• CPI-based increases
• Announced in advance
• Takes effect January 1

Who's Covered

Covered Employees

Minimum wage applies to:

• Most workers
• Part-time and full-time
• Hourly employees

Exemptions

May not apply to:

• Some agricultural workers
• Employees of seasonal camps
• Federal minimum may apply instead

Tipped Employees

Tip Credit Allowed

Requirements:

• Inform employee of tip credit
• Employee keeps all tips
• Total must reach minimum wage

Tip Pooling

Rules:

• Can require tip sharing
• Only among customarily tipped employees
• Cannot include managers

If Tips Fall Short

Employer must:

• Make up difference to reach minimum
• Calculate per pay period
• Cannot average across weeks

Employer Responsibilities

Posting Requirements

Must display:

• Minimum wage poster
• In conspicuous location
• State and federal posters

Record Keeping

Maintain records of:

• Hours worked
• Wages paid
• Tips received (for tipped employees)

Pay Statements

Provide employees:

• Itemized pay stubs
• Hours worked
• Rate of pay

Violations

Common Violations

Illegal practices:

• Paying below minimum
• Improper tip credit
• Requiring tip kickbacks
• Not making up tip shortfall

Penalties

Employer may face:

• Back pay owed
• Liquidated damages
• Civil penalties
• Criminal penalties (willful)

Filing Complaints

Michigan LEO

Department of Labor:

• Phone: 517-284-7800
• Online complaint form
• No filing deadline specified

U.S. Department of Labor

For federal violations:

• Phone: 1-866-487-9243
• FLSA enforcement

Private Lawsuit

Can sue for:

• Unpaid wages
• Damages
• Attorney's fees

Common Scenarios

Scenario 1: Below Minimum

Situation: Paid $9.00/hour.

Analysis: Below Michigan minimum. Employer owes difference plus damages.

Scenario 2: Tipped Employee Shortfall

Situation: Slow week. Tips + $4.74 = $10.00/hour.

Analysis: Employer must pay extra $2.48/hour to reach minimum.

Scenario 3: Tip Kickback

Situation: Required to share tips with manager.

Analysis: Illegal. Managers cannot participate in tip pool.

Local Minimum Wages

No Local Preemption

Michigan law:

• Preempts local minimum wages
• Cities cannot set higher
• State rate applies statewide

Frequently Asked Questions

What is Michigan's minimum wage?

$12.48/hour as of February 21, 2026.

Is Michigan minimum above federal?

Yes. Federal is $7.25; Michigan is $12.48.

What's the tipped minimum wage?

$4.74/hour (38% of standard minimum), with tips making up difference to $12.48.

Can cities set higher minimums?

No. Michigan preempts local minimum wage laws.

Where do I file a wage complaint?

Michigan LEO or U.S. Department of Labor.

Related Topics

• Michigan Wages and Hours
• Michigan Overtime Laws
• Michigan Unpaid Wages
• Michigan Employment Law Hub

Take Action

If you're not receiving minimum wage:

1. Calculate what you're owed
2. Document hours and pay
3. File complaint with Michigan LEO
4. Consider DOL complaint
5. Consult employment attorney

Legal Disclaimer

This article provides general information about minimum wage in Michigan and is not legal advice. Rates are subject to change. For current rates, check michigan.gov. For specific advice, consult a licensed Michigan employment attorney.

For official information:

• Michigan LEO: https://www.michigan.gov/leo | 517-284-7800
• U.S. DOL: https://www.dol.gov/agencies/whd | 1-866-487-9243