State of Michigan Minimum Wage Facts

February 11, 2016

This time of year payroll companies begin sending out notices to remind their clients to check on the local minimum wage laws. This task can be both confusing and frustrating. Navigating the State of Michigan Employer’s website is not for the faint of heart.

A few facts to be aware of:

• Employers must always bare in mind that they must use the higher prevailing minimum wage, comparing federal versus state minimum wage rates. Michigan’s minimum wage at $8.50 per hour is greater than the Federal minimum wage rate, which stands at $7.25 per hour.

• Employers are required by law to pay tipped employees a base wage of $3.23 per hour. Earned tips must bring employee wages to the minimum wage rate. If not, employers are responsible for increasing base pay to make sure employees receive the full minimum wage amount.

• A “Training Wage” of $4.25 per hour is allowable for workers age 16-19 for the first 90 days of their employment

If you would like to do more reading on this topic, please click MIOSHA Tipped Employees Fact Sheet here or visit Downloads area at http://koetjeaccounting.com/forms/.

Michigan Minimum Wage Law can be found at: http://www.legislature.mi.gov/%28S%28temwknenhrmfir45ni5iavj2%29%29/mileg.aspx?page=getobject&objectname=mcl-act-154-of-1964&queryid=1474035&highlight=minimum+wage

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