{"id":137641,"date":"2024-07-11T16:17:01","date_gmt":"2024-07-11T14:17:01","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=137641"},"modified":"2024-12-18T11:14:13","modified_gmt":"2024-12-18T09:14:13","slug":"minimum-wage-in-michigan","status":"publish","type":"post","link":"https:\/\/preproduction.factorialhr.com\/blog\/minimum-wage-in-michigan\/","title":{"rendered":"Minimum Wage in Michigan: 2025 Update"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Like many other states in the U.S., <\/span><b>Michigan has established its own minimum wage laws <\/b><span style=\"font-weight: 400;\">that dictate the <\/span><b>lowest hourly rate<\/b><span style=\"font-weight: 400;\"> employers can offer their employees. These regulations have been designed to ensure that workers receive<\/span><b> fair pay for their efforts<\/b><span style=\"font-weight: 400;\">, helping them achieve a <\/span><b>decent standard of living<\/b><span style=\"font-weight: 400;\">. But <\/span><b>what is the minimum wage in Michigan<\/b><span style=\"font-weight: 400;\"> and <\/span><b>how has it changed<\/b><span style=\"font-weight: 400;\"> recently?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In today&#8217;s comprehensive guide for employers, we will cover <\/span><b>everything you need to know about the Michigan minimum wage<\/b><span style=\"font-weight: 400;\"> to help you <\/span><b>understand your responsibilities<\/b><span style=\"font-weight: 400;\"> and the <\/span><b>rights of your employees<\/b><span style=\"font-weight: 400;\">. We will also share some <\/span><b>tips and best practices <\/b><span style=\"font-weight: 400;\">to help you <\/span><b>comply with your obligations<\/b><span style=\"font-weight: 400;\"> and foster a <\/span><b>positive workplace environment<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Framework\">The U.S. Minimum Wage Framework<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#History\">History of the Minimum Wage in Michigan<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Current\">What Is the Current Minimum Wage in Michigan?<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Exemptions\">Exemptions &amp; Special Cases<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Laws\">Additional Michigan State Wage Laws<\/a><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Compliance\">Best Practices to Ensure Wage Law Compliance<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><a href=\"#Factorial\">How Factorial Can Help You Comply with Michigan Wage Laws<\/a> <\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><a href=\"https:\/\/factorialhr.com\/payroll\">Centralize your payroll management processes and get ahead<\/a> \ud83d\ude80<\/li>\n<\/ul>\n<p><a href=\"https:\/\/factorialhr.co.uk\/request-demo\"><img decoding=\"async\" class=\"aligncenter wp-image-130408 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg\" alt=\"factorial hr software demo\" width=\"775\" height=\"266\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-300x103.jpg 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value-768x263.jpg 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/03\/02145649\/factorial-demo-banner-value.jpg 800w\" sizes=\"(max-width: 775px) 100vw, 775px\" \/><\/a><\/p>\n<h2><b><a name=\"Framework\"><\/a>The U.S. Minimum Wage Framework<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The United States operates a <\/span><b>tiered minimum wage system<\/b><span style=\"font-weight: 400;\">, with varying rates set at the <\/span><b>federal, state and municipal levels<\/b><span style=\"font-weight: 400;\">. This creates a complex system for determining the minimum wage for workers across the United States.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Federal Minimum Wage. <\/b><span style=\"font-weight: 400;\">The federal minimum wage, established by the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/fair-labor-standards-act\/\"><span style=\"font-weight: 400;\">Fair Labor Standards Act<\/span><\/a><span style=\"font-weight: 400;\">, serves as the baseline wage for non-exempt employees nationwide. The current federal minimum wage stands at $7.25 per hour.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>State Minimum Wage<\/b><span style=\"font-weight: 400;\">. Some states have established their own minimum wage laws. These state minimum wages are often higher than the federal rate, aiming to align with the cost of living and labor market conditions within their respective jurisdictions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Municipal Minimum Wage<\/b><span style=\"font-weight: 400;\">. A growing number of cities and counties have also implemented their own minimum wage limits, often higher than both state and federal minimum wage rates. These municipal-level minimum wages reflect the unique economic circumstances of specific localities.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b><a name=\"History\"><\/a>History of the Minimum in Wage Michigan<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are currently <\/span><b>34 states, territories and districts <\/b><span style=\"font-weight: 400;\">that have minimum wages <\/span><b>above the federal standard<\/b><span style=\"font-weight: 400;\"> of $7.25 per hour. <\/span><b>Five <\/b><span style=\"font-weight: 400;\">states have<\/span><b> not adopted a state minimum wage<\/b><span style=\"font-weight: 400;\"> (Alabama, Louisiana, Mississippi, South Carolina and Tennessee), and Georgia and Wyoming have a<\/span><b> minimum wage below $7.25 per hour<\/b><span style=\"font-weight: 400;\">. (although the <\/span><b>federal minimum wage of $7.25 per hour still applies)<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, what about Michigan?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The state of <\/span><b>Michigan has its own minimum wage<\/b><span style=\"font-weight: 400;\">, although increases have been relatively small and gradual.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a <\/span><b>brief history<\/b><span style=\"font-weight: 400;\"> of the minimum wage in Michigan.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1971<\/b><span style=\"font-weight: 400;\">. The first minimum wage in Michigan is set at $1.60, in line with the federal minimum wage.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1961<\/b><span style=\"font-weight: 400;\">. Employment is covered by amendments to the <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\/flsa\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">FLSA<\/span><\/a><span style=\"font-weight: 400;\"> and the minimum wage in Michigan is raised to the federal rate ($1.80).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1981<\/b><span style=\"font-weight: 400;\">. Stays in line with the federal rate until 1981, when the state raises it to $2.50 (40 cents higher than federal).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1995 &#8211; 1997<\/b><span style=\"font-weight: 400;\">. Between 1995 and 1997, the federal minimum wage increases from $4.25 per hour to $5.15 per hour. Michigan continues to align with these changes.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>1998<\/b><span style=\"font-weight: 400;\">. Another raise brings the minimum wage in Michigan to $5.15 per hour, matching the federal rate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>2006<\/b><span style=\"font-weight: 400;\">. Michigan passed Public Act 81, which raises the minimum wage from $5.15 to $6.95 per hour. This law also sets a schedule for future increases, reaching $7.40 per hour by 2008.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>2014<\/b><span style=\"font-weight: 400;\">. Public Act 138 sets a new schedule for increases starting from $8.15, with further increases planned for subsequent years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>2023<\/b><span style=\"font-weight: 400;\">. The minimum wage in Michigan is raised to $10.10 per hour.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>2024<\/b><span style=\"font-weight: 400;\">. The minimum wage in Michigan is raised to $10.33 per hour, with future increases scheduled annually until 2028.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b><a name=\"Current\"><\/a>What Is the Current Minimum Wage in Michigan?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The minimum wage for the entire state of Michigan is expected to increase twice in 2025. Starting January 1, 2025 the minimum wage is placed at <\/span><b>$10.56 per hour <\/b>and after February 21, 2025<strong> an additional increase<\/strong> will be made, setting the rate at<strong> $12.48 per hour.<\/strong><span style=\"font-weight: 400;\">\u00a0This is <\/span><b>higher than the federal minimum wage<\/b><span style=\"font-weight: 400;\">, which remains at $7.25 per hour (and it\u2019s not set to increase any time soon). This minimum wage rate is enforced by the <\/span><a href=\"https:\/\/www.michigan.gov\/leo\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Michigan Department of Labor and Economic Opportunity (LEO)<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The minimum wage in Michigan applies to <\/span><b>all businesses with two or more employees<\/b><span style=\"font-weight: 400;\">, although there are some exceptions (as we will see in more detail below). Not only, that, but the minimum wage in Michigan is scheduled to increase to <\/span><b>$14.97 per hour by 2028<\/b><span style=\"font-weight: 400;\">. This incremental approach aims to provide a <\/span><b>balanced path<\/b><span style=\"font-weight: 400;\"> for both employers and employees, ensuring <\/span><b>fair compensation<\/b><span style=\"font-weight: 400;\"> while allowing businesses time to <\/span><b>adapt to the new wage standards<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, unlike other states, the minimum wage in Michigan <\/span><b>isn&#8217;t always adjusted annually<\/b><span style=\"font-weight: 400;\">. Specifically, according to the State\u2019s minimum wage laws, increases are <\/span><b>only made in years where the unemployment rate is above 8.5%<\/b><span style=\"font-weight: 400;\">. As a result, there have been no updates to the minimum wage in Michigan during <\/span><b>periods of high unemployment<\/b><span style=\"font-weight: 400;\">, such as in <\/span><b>2021<\/b><span style=\"font-weight: 400;\">, when the scheduled increase was delayed due to <\/span><a href=\"https:\/\/www.govdocs.com\/2021-michigan-minimum-wage-increase-likely-delayed\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">economic conditions related to the COVID-19 pandemic<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, Michigan currently uses only a <\/span><b>statewide minimum wage law<\/b><span style=\"font-weight: 400;\"> rather than allowing cities or counties to set alternative higher rates. This means that there are <\/span><b>no municipal minimum wage rates<\/b><span style=\"font-weight: 400;\"> in the Great Lakes State.\u00a0<\/span><\/p>\n<h2><b><a name=\"Exemptions\"><\/a>Exemptions &amp; Special Cases<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While the minimum wage in Michigan applies to <\/span><b>most adult workers<\/b><span style=\"font-weight: 400;\"> over the age of <\/span><b>18 <\/b><span style=\"font-weight: 400;\">who are employed by a <\/span><b>business with two or more employees<\/b><span style=\"font-weight: 400;\">, there are certain <\/span><b>exemptions <\/b><span style=\"font-weight: 400;\">that you need to be aware of.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s an <\/span><b>overview <\/b><span style=\"font-weight: 400;\">of these exemptions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Young workers<\/b><span style=\"font-weight: 400;\">. You can pay employees aged 16 and 17 paid 85% of the standard minimum wage ($8.98 per hour as of 2025).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tipped Employees<\/b><span style=\"font-weight: 400;\">. The current minimum wage in Michigan for tipped employees (employees who regularly receive gratuities, like bar staff, servers, and hairdressers) increased to $4.01 per hour this year, with an average hourly tipped wage of $6.55 to make up the difference. In addition this is will increase starting February 21, 2025 to a minimum wage of $5.99 and a minimum average tips of $6.49 per hour.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Training wage<\/b><span style=\"font-weight: 400;\">. Employers can pay employees under the age of 20 a training wage of $4.25 per hour for the first 90 days of employment.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Employees with disabilities<\/b><span style=\"font-weight: 400;\">. You can pay a lower wage to employees with disabilities if they are covered by the Fair Labor Standards Act (FLSA).<\/span><\/li>\n<\/ul>\n<h2><b><a name=\"Laws\"><\/a>Additional Michigan State Wage Laws<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In addition to the Michigan minimum wage, the &#8220;Great Lakes&#8221; state has several <\/span><b>supplementary wage laws<\/b><span style=\"font-weight: 400;\"> that employers need to understand and apply.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s explore these <\/span><b>additional Michigan wage laws<\/b><span style=\"font-weight: 400;\"> in a bit more detail so you can make sure your <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-handbook\/\"><span style=\"font-weight: 400;\">employee handbook<\/span><\/a><span style=\"font-weight: 400;\"> meets all requirements.<\/span><\/p>\n<h3><b>Sick Leave<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In 2019, Michigan introduced the <\/span><a href=\"https:\/\/www.michigan.gov\/-\/media\/Project\/Websites\/leo\/Documents\/WAGE-HOUR\/WHD-99xx-Information-Sheets\/WHD-9911-PMLA-Poster\/Paid_Medical_Leave_Act_Poster_9911_English.pdf?rev=764ee47c1ed442bd9ac1d904eb042ea7\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Paid Medical Leave Act (PMLA)<\/span><\/a><span style=\"font-weight: 400;\">, giving certain employees in the State the legal right to <\/span><b>paid sick leave<\/b><span style=\"font-weight: 400;\">. This was a significant step forward in <\/span><b>labor rights and worker protections<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, Michigan employers with 50 or more employees must now provide <\/span><b>one hour of paid sick leave<\/b><span style=\"font-weight: 400;\"> for <\/span><b>every 35 hours<\/b><span style=\"font-weight: 400;\"> an employee works up. Employees can <\/span><b>accumulate <\/b><span style=\"font-weight: 400;\">up to <\/span><b>40 hours of leave per year<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employees can take sick leave for a<\/span><b> variety of reasons<\/b><span style=\"font-weight: 400;\">, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A worker\u2019s physical or mental illness or that of a family member.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During a public health emergency.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Addressing domestic violence and assault.<\/span><\/li>\n<\/ul>\n<h3><b>Unions<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">According to Michigan&#8217;s <\/span><a href=\"https:\/\/www.legislature.mi.gov\/documents\/mcl\/pdf\/mcl-act-336-of-1947.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Public Employment Relations Act<\/span><\/a><span style=\"font-weight: 400;\"> (PERA), <\/span><b>public employees <\/b><span style=\"font-weight: 400;\">have the right to <\/span><b>form, join or assist labor organizations<\/b><span style=\"font-weight: 400;\"> and to <\/span><b>negotiate collectively <\/b><span style=\"font-weight: 400;\">through representatives of their own choosing. However, Michigan no longer mandates union membership after the <\/span><b>Right to Work<\/b><span style=\"font-weight: 400;\"> laws were amended in 2023.<\/span><\/p>\n<h3><b>Pay Discrimination<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Michigan has <\/span><b>progressive pay discrimination laws<\/b><span style=\"font-weight: 400;\"> aimed at ensuring fair pay and preventing wage discrimination based on gender, race, and other protected characteristics.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, according to the <\/span><a href=\"https:\/\/www.michigan.gov\/-\/media\/Project\/Websites\/mdcr\/public-act-453-of-1976-elliott-larsen.pdf?rev=c15451b0a9f943d78ae818259a38c8dc\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Elliott-Larsen Civil Rights Act<\/span><\/a><span style=\"font-weight: 400;\">, employers cannot offer <\/span><b>discriminatory pay<\/b><span style=\"font-weight: 400;\"> on the basis of an employee\u2019s <\/span><b>religion, race, color, national origin, age, sex, height, weight, familial status, or marital status<\/b><span style=\"font-weight: 400;\">. This is in addition to the protections offered by <\/span><a href=\"https:\/\/factorialhr.com\/blog\/title-vii\/\"><span style=\"font-weight: 400;\">Title VII<\/span><\/a><span style=\"font-weight: 400;\"> of the Civil Rights Act of 1964.<\/span><\/p>\n<h3><b>Pay Transparency<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While not a standalone law, Michigan&#8217;s employment laws include provisions that <\/span><b>protect employees from retaliation if they discuss or disclose their wages<\/b><span style=\"font-weight: 400;\">. This is intended to promote <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/\"><span style=\"font-weight: 400;\">pay transparency<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pay-parity\/\"><span style=\"font-weight: 400;\">pay parity<\/span><\/a><span style=\"font-weight: 400;\"> and help identify and address wage discrimination\u200b<\/span><\/p>\n<h3><b>Overtime<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Michigan adheres to the <\/span><b>federal overtime regulations<\/b><span style=\"font-weight: 400;\"> set by the <\/span><b>Fair Labor Standards Act (FLSA)<\/b><span style=\"font-weight: 400;\">. Specifically, <\/span><b>Michigan overtime law<\/b><span style=\"font-weight: 400;\"> requires that non-exempt employees receive overtime pay equal to <\/span><b>1.5 x their regular hourly pay<\/b><span style=\"font-weight: 400;\"> for any hours worked over 40 in a week (overtime). These hours must be <\/span><b>tracked and recorded<\/b><span style=\"font-weight: 400;\"> and <\/span><b>stored <\/b><span style=\"font-weight: 400;\">for a period of <\/span><b>at least three years<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Michigan does not have <\/span><b>additional state-specific overtime laws<\/b><span style=\"font-weight: 400;\"> beyond those stipulated by the FLSA.\u00a0<\/span><\/p>\n<h3><b>Payment of Wages and Fringe Benefits Act<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">According to the <\/span><b>Payment of Wages and Fringe Benefits Act<\/b><span style=\"font-weight: 400;\">, employers must <\/span><b>pay <\/b><span style=\"font-weight: 400;\">employees at least<\/span><b> twice a month<\/b><span style=\"font-weight: 400;\">. This can be <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employers-guide-to-biweekly-pay\/\"><span style=\"font-weight: 400;\">biweekly<\/span><\/a><span style=\"font-weight: 400;\">, provided the payment frequency does not exceed <\/span><b>16 days between pay periods<\/b><span style=\"font-weight: 400;\">. Employers must ensure that employees are paid <\/span><b>all wages earned during the pay period<\/b><span style=\"font-weight: 400;\"> within this timeframe.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, employers must <\/span><b>maintain records for at least three years<\/b><span style=\"font-weight: 400;\"> that indicate the employee&#8217;s <\/span><b>name, address, birthdate, classification, rate of pay, total hours worked in each pay period, total wages paid<\/b><span style=\"font-weight: 400;\"> and an itemization of <\/span><a href=\"https:\/\/factorialhr.com\/blog\/fringe-benefits-examples\/\"><b>fringe benefits<\/b><\/a><span style=\"font-weight: 400;\">. If an employee believes that their employer has violated this act, they can file a complaint with the <\/span><a href=\"https:\/\/www.dol.gov\/agencies\/whd\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Wage and Hour Division<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Equal Pay <\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, the <\/span><a href=\"https:\/\/www.legislature.mi.gov\/Laws\/MCL?objectName=mcl-Act-390-of-1978#:~:text=AN%20ACT%20to%20regulate%20the,regarding%20wages%20and%20fringe%20benefits\" target=\"_blank\" rel=\"noopener\"><b>Michigan Equal Pay Law<\/b><\/a><span style=\"font-weight: 400;\"> prohibits private employers from <\/span><b>discriminating in pay based on an individual&#8217;s membership in a protected class<\/b><span style=\"font-weight: 400;\">. This aligns with the Federal <\/span><a href=\"https:\/\/factorialhr.com\/blog\/equal-pay-act\/\"><span style=\"font-weight: 400;\">Equal Pay Act<\/span><\/a><span style=\"font-weight: 400;\"> which also aims to ensure that all employees receive <\/span><b>equal pay for equal work<\/b><span style=\"font-weight: 400;\"> (also known as <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pay-parity\/\"><span style=\"font-weight: 400;\">pay parity<\/span><\/a><span style=\"font-weight: 400;\">).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Specifically, according to the these laws, all employees have a right to <\/span><b>pay equity and protection against sex-based compensation discrimination<\/b><span style=\"font-weight: 400;\">. This means that if multiple individuals are performing <\/span><b>substantially equal jobs that require similar levels of skill, effort, and responsibility, and under similar working conditions<\/b><span style=\"font-weight: 400;\">, then you must pay them the <\/span><b>same wage or salary, regardless of gender<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><b><a name=\"Compliance\"><\/a>Best Practices to Ensure Wage Law Compliance <\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">And that\u2019s pretty much everything you need to know about the minimum wage in Michigan and the state&#8217;s additional wage laws! All that remains is to <\/span><b>ensure that your business meets the legal requirements of these laws<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, how can you make sure you don\u2019t inadvertently side-step the law in Michigan?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Simple. Just implement the following <\/span><b>essential tips and best practices<\/b><span style=\"font-weight: 400;\"> to protect your business from potential <\/span><b>non-compliance fines and penalties<\/b><span style=\"font-weight: 400;\">. Plus, ensuring compliance in this way also helps you foster a <\/span><b>positive and compliant work environment<\/b><span style=\"font-weight: 400;\"> for your employees, so you can <\/span><b>attract and retain top talent<\/b><span style=\"font-weight: 400;\">, <\/span><b>boost employee morale<\/b><span style=\"font-weight: 400;\">, and <\/span><b>enhance overall productivity and workplace harmony<\/b><span style=\"font-weight: 400;\">!<\/span><\/p>\n<h3><b>Stay Informed and Up to Date<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Firstly, keep up to date with <\/span><b>federal and state minimum wage laws<\/b><span style=\"font-weight: 400;\">, as these can change. The <\/span><b>Michigan Department of Labor and Economic Opportunity (LEO)<\/b><span style=\"font-weight: 400;\"> and the <\/span><a href=\"https:\/\/www.dol.gov\/\" target=\"_blank\" rel=\"noopener\"><b>U.S. Department of Labor<\/b><\/a><span style=\"font-weight: 400;\"> websites are good resources for this.<\/span><\/p>\n<h3><b>Maintain Accurate Records and Conduct Regular Audits<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Secondly, it&#8217;s important to <\/span><b>maintain accurate and up-to-date records of all employee work hours and wages<\/b><span style=\"font-weight: 400;\">. Keeping precise records helps ensure employees are <\/span><b>paid correctly and on time<\/b><span style=\"font-weight: 400;\">. Regular <\/span><b>audits<\/b><span style=\"font-weight: 400;\">, both internal and external, can <\/span><b>spot and fix mistakes<\/b><span style=\"font-weight: 400;\">, making sure everything is legal and helping you avoid hefty fines.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-record-management-software\/\"><span style=\"font-weight: 400;\">employee record management software<\/span><\/a><span style=\"font-weight: 400;\"> can make this easier. These systems <\/span><b>automate time tracking, payroll processing and compliance checks<\/b><span style=\"font-weight: 400;\">, which cuts down on errors and saves time. By using this technology, you can maintain <\/span><b>accurate and reliable records<\/b><span style=\"font-weight: 400;\"> and focus on other important parts of your business while staying compliant with the law.<\/span><\/p>\n<h3><b>Classify Employees Correctly<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Thirdly, make sure you properly classify your employees as either<\/span> <a href=\"https:\/\/factorialhr.com\/blog\/exempt-vs-non-exempt-employees\/\"><b>exempt or non-exempt<\/b><\/a><b> under the minimum wage regulations<\/b><span style=\"font-weight: 400;\">. This classification determines whether an employer must offer <\/span><b>overtime pay<\/b><span style=\"font-weight: 400;\">. Carefully <\/span><b>review the duties and responsibilities of each employee<\/b><span style=\"font-weight: 400;\"> to determine their <\/span><b>exempt or non-exempt status<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Implement Accurate Payroll Practices<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s important to maintain <\/span><b>accurate and up-to-date payroll records<\/b><span style=\"font-weight: 400;\"> that include employee names, hours worked, wages paid and any deductions that you have made. Michigan law requires you to keep these records for <\/span><b>at least three years<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You should also regularly <\/span><b>review your payroll records<\/b><span style=\"font-weight: 400;\"> to identify any inconsistencies or errors. And don\u2019t forget to create a <\/span><a href=\"https:\/\/factorialhr.com\/blog\/payroll-checklist\/\"><span style=\"font-weight: 400;\">payroll checklist<\/span><\/a><span style=\"font-weight: 400;\"> to make sure that you complete all necessary steps during each payroll cycle, including <\/span><b>verifying employee hours, ensuring correct pay rates and calculating <\/b><a href=\"https:\/\/factorialhr.com\/blog\/comprehensive-guide-to-employer-payroll-taxes\/\"><b>payroll tax deductions<\/b><\/a><b> accurately<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Track Overtime Hours<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In addition, make sure you accurately <\/span><b>track <\/b><a href=\"https:\/\/factorialhr.com\/blog\/mandatory-overtime\/\"><b>overtime<\/b><\/a><b> hours<\/b><span style=\"font-weight: 400;\"> worked by non-exempt employees. Implement a system for employees to report overtime hours, such as using <\/span><a href=\"https:\/\/factorialhr.com\/blog\/time-card-calculator\/\"><b>timesheets<\/b><\/a><b> or electronic timekeeping systems<\/b><span style=\"font-weight: 400;\">. Ensure that overtime pay is calculated and paid correctly at the appropriate rate (<\/span><a href=\"https:\/\/factorialhr.com\/blog\/time-and-a-half\/\"><span style=\"font-weight: 400;\">time and a half<\/span><\/a><span style=\"font-weight: 400;\">).<\/span><\/p>\n<h3><b>Use the Right Payroll Software<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, choosing <\/span>the right <a href=\"https:\/\/factorialhr.com\/blog\/best-payroll-software\/\">payroll software<\/a><span style=\"font-weight: 400;\"> is essential. In fact, you could even argue that it is the <\/span><b>most important tool <\/b><span style=\"font-weight: 400;\">for <\/span><a href=\"https:\/\/factorialhr.com\/blog\/payroll\/\"><span style=\"font-weight: 400;\">managing employee wages and compliance<\/span><\/a><span style=\"font-weight: 400;\">. The right software helps you stay compliant by <\/span>automatically adjusting for changes in minimum wage rates<span style=\"font-weight: 400;\"> and <\/span>managing tax withholdings<span style=\"font-weight: 400;\">. It also helps you <\/span>track employee work hours, calculate overtime and <a href=\"https:\/\/factorialhr.com\/blog\/holiday-pay\/\">holiday pay<\/a>, and produce accurate pay stubs<span style=\"font-weight: 400;\"> at the end of each <\/span><a href=\"https:\/\/factorialhr.com\/blog\/pay-period\/\"><span style=\"font-weight: 400;\">pay period<\/span><\/a><span style=\"font-weight: 400;\">. This <\/span><b>reduces the risk of errors<\/b><span style=\"font-weight: 400;\">, <\/span><b>streamlines administrative tasks<\/b><span style=\"font-weight: 400;\">, and ensures that employees are <\/span><b>paid correctly and on time<\/b><span style=\"font-weight: 400;\">, helping your business comply with all Michigan wage laws and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-time-tracking\/\"><span style=\"font-weight: 400;\">time-tracking legal requirements<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/payroll\"><img decoding=\"async\" class=\"aligncenter wp-image-125685 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-300x103.png\" alt=\"payroll software\" width=\"772\" height=\"265\" srcset=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-300x103.png 300w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner-768x263.png 768w, https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2023\/11\/25120137\/payroll-integrate-demo-banner.png 900w\" sizes=\"(max-width: 772px) 100vw, 772px\" \/><\/a><\/p>\n<h2><b><a name=\"Factorial\"><\/a>How Factorial Can Help You Comply with Michigan Wage Laws<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Factorial can help you navigate the complexities of Michigan\u2019s wage laws and <\/span><b>streamline your payroll processes to maintain compliance<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Automated payroll calculations<\/b><span style=\"font-weight: 400;\">. Firstly, Factorial\u2019s automated payroll system eliminates manual calculations, reducing the risk of errors and ensuring accurate compensation for all employees. It automatically factors in minimum wage Michigan rates and requirements, overtime pay, holiday pay and other relevant regulations to ensure compliance with Michigan wage laws.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Real-time overtime tracking<\/b><span style=\"font-weight: 400;\">. Secondly, Factorial\u2019s time tracking feature and <\/span><a href=\"https:\/\/factorialhr.com\/blog\/electronic-time-clock\/\"><span style=\"font-weight: 400;\">electronic time clock<\/span><\/a><span style=\"font-weight: 400;\"> enable real-time monitoring of overtime hours. This allows you to maintain and generate <\/span><a href=\"https:\/\/factorialhr.com\/blog\/employee-record-management-software\/\"><span style=\"font-weight: 400;\">accurate records and reports<\/span><\/a><span style=\"font-weight: 400;\"> to identify and address any overtime issues promptly, ensuring compliance with Michigan\u2019s overtime pay regulations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>On-demand pay<\/b><span style=\"font-weight: 400;\">. Factorial\u2019s on-demand pay feature allows employees to access their earned wages between pay periods, providing financial flexibility and enhancing employee satisfaction.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Secure payroll processing<\/b><span style=\"font-weight: 400;\">. Factorial employs robust payroll security measures to safeguard sensitive employee data.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Comprehensive payroll reporting<\/b><span style=\"font-weight: 400;\">. Finally, Factorial generates detailed payroll reports, providing valuable insights into employee compensation, overtime trends and overall payroll expenses.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">By leveraging <\/span><a href=\"https:\/\/factorialhr.com\/payroll\"><b>Factorial\u2019s comprehensive payroll solution<\/b><\/a><span style=\"font-weight: 400;\">, you can <\/span><b>effectively manage each stage of your payroll process<\/b><span style=\"font-weight: 400;\">, ensuring <\/span><b>accuracy and compliance<\/b><span style=\"font-weight: 400;\"> with all Michigan wage laws (including the minimum wage in Michigan). That way, you can foster a <\/span><b>positive and compliant work environment <\/b><span style=\"font-weight: 400;\">and enhance <\/span><b>overall efficiency and transparency<\/b><span style=\"font-weight: 400;\"> in your payroll operations.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Like many other states in the U.S., Michigan has established its own minimum wage laws that dictate the lowest hourly rate employers can offer their employees. These regulations have been designed to ensure that workers receive fair pay for their efforts, helping them achieve a decent standard of living. But what is the minimum wage<a href=\"https:\/\/preproduction.factorialhr.com\/blog\/minimum-wage-in-michigan\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":138424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146],"tags":[],"class_list":["post-137641","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-hr"],"acf":{"topics":"payroll"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Minimum Wage in Michigan: 2025 Update | Factorial<\/title>\n<meta name=\"description\" content=\"Employer guide to the minimum wage in Michigan: everything you need to know to ensure compliance in your business\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Minimum Wage in Michigan: 2025 Update\" \/>\n<meta property=\"og:description\" content=\"Employer guide to the minimum wage in Michigan: everything you need to know to ensure compliance in your business\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preproduction.factorialhr.com\/blog\/minimum-wage-in-michigan\/\" \/>\n<meta property=\"og:site_name\" content=\"Factorial\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.linkedin.com\/company\/factorialhr\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-07-11T14:17:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-18T09:14:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/preproduction.factorialhr.com\/wp-content\/uploads\/2024\/07\/25170330\/michigan-minimum-wage.png\" \/>\n\t<meta property=\"og:image:width\" content=\"2048\" \/>\n\t<meta property=\"og:image:height\" content=\"1111\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Cat Symonds\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@factorialhr\" \/>\n<meta name=\"twitter:site\" content=\"@factorialhr\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cat Symonds\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/minimum-wage-in-michigan\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/minimum-wage-in-michigan\/\"},\"author\":{\"name\":\"Cat Symonds\",\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/#\/schema\/person\/4ebd3e0d92175b5ddd09603f442b8632\"},\"headline\":\"Minimum Wage in Michigan: 2025 Update\",\"datePublished\":\"2024-07-11T14:17:01+00:00\",\"dateModified\":\"2024-12-18T09:14:13+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/minimum-wage-in-michigan\/\"},\"wordCount\":2456,\"publisher\":{\"@id\":\"https:\/\/preproduction.factorialhr.com\/blog\/#organization\"},\"articleSection\":[\"Legal &amp; 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