As 2017 comes to a close, it is time to start looking toward 2018 and the upcoming changes. One change of particular importance to employers will be the raising of the Michigan minimum wage January 1st. The minimum wage will be increasing 35 cents from $8.90 to $9.25 and this raise may have significant implications on the bottom line of many organizations.
Wage Increases Throughout the Years
According to the Department of Licensing and Regulatory Affairs, this increase is the last of those outlined by the Workforce Opportunity Wage Act enacted in 2014. The past minimum wage increases lead by the Workforce Opportunity Wage Act were as follows:
Will Everyone Earning Minimum Wage make $9.25?
The act applies to all Michigan employers with two or more employees at the age of 16 and older. The act also allows for Michigan employers to pay their 16 and 17-year-old employees 85 percent of the minimum wage. According to the chart above, with the upcoming increase, employers will be allowed to pay their employees of 16 and 17 years of age at $7.86. It is imperative for employers to become familiar with the new law and make organizational accommodations in order to prepare for it.
As for those employees who’s pay mainly depends on the tips they earn per shift, as of January 1st, the minimum wage will rise from $3.38 an hour to $3.52 not including the tips they earn.
In addition to the 2018 raise in Michigan’s minimum wage, further increases will be implemented annually based on the Consumer Price Index (CPI) beginning January 1st, 2019. These future increases are intended to more successfully compensate for the effects of inflation. For more information, visit: http://www.michigan.gov/lara/0,4601,7-154-59886-370158–,00.html
Minimum Wage Increases in Other States
Some other states will also be raising their minimum wage in 2018. These states include Florida, Minnesota, California, Arizona, Colorado, and several others. For more information, please visit: https://compensation.blr.com/Compensation-news/Compliance/Minimum-Wage/State-Minimum-Wage-Increases-for-2018-Map-/