Detroit, Michigan, January 2, 2026
Effective January 1, 2026, Michigan will raise its minimum wage to $13.73 per hour, up from $12.48 per hour, as part of a plan to reach $15.00 by 2027. The minimum wage for minors will increase to $11.67, and tipped employees will see their rate rise to $5.49. This change follows a ruling reinstating prior minimum wage laws, aiming to positively impact workers while posing challenges for employers.
Detroit, Michigan – Minimum Wage Increase to $13.73 Per Hour
Effective January 1, 2026, Michigan’s minimum wage will rise to $13.73 per hour, marking a significant increase from the current rate of $12.48 per hour. This adjustment is part of a scheduled series of increases aimed at reaching $15.00 per hour by January 1, 2027. Additionally, the minimum wage for minors aged 16 and 17 will increase to $11.67 per hour, and the tipped employee rate will rise to $5.49 per hour, representing 40% of the full minimum wage.
Details of the Minimum Wage Increase
- Effective Date: January 1, 2026
- New Minimum Wage Rate: $13.73 per hour
- Previous Rate: $12.48 per hour
- Increase Amount: $1.25 per hour
- New Minimum Wage for Minors (16-17 years old): $11.67 per hour
- New Tipped Employee Rate: $5.49 per hour (40% of the full minimum wage)
Background and Legislative Context
In July 2024, the Michigan Supreme Court ruled to reinstate the original versions of the state’s minimum wage and paid sick leave laws, which had been amended by the legislature. This decision set a deadline of February 21, 2025, for the original laws to take effect. In response, the Michigan legislature passed Senate Bill 8 (S.B. 8) and House Bill 4002 (H.B. 4002) to clarify and modify these laws. S.B. 8, signed into law in February 2025, established a new schedule for minimum wage increases, including the upcoming rise to $13.73 per hour on January 1, 2026, and a subsequent increase to $15.00 per hour on January 1, 2027. The bill also introduced a gradual increase in the minimum wage for tipped employees, starting at 38% of the general minimum wage in 2025 and reaching 50% by 2031. Additionally, the legislation imposed a $2,500 fine on employers who fail to pay tipped workers the required minimum wage rate.
Implications for Workers and Employers
The scheduled increases are expected to positively impact workers by providing higher wages. However, employers may face challenges such as increased payroll expenses, potential pricing adjustments, and the need to review staffing strategies to manage costs effectively. It’s important for businesses to stay informed about these changes to ensure compliance and to plan accordingly for the financial implications.
Additional Resources
For more information on Michigan’s minimum wage laws and upcoming changes, employers and employees can refer to the Michigan Department of Labor and Economic Opportunity’s Wage and Hour Division resources. Staying informed will help ensure a smooth transition as the new wage rates take effect.
Frequently Asked Questions (FAQ)
When will Michigan’s minimum wage increase to $13.73 per hour?
Effective January 1, 2026, Michigan’s minimum wage will rise to $13.73 per hour, up from the current rate of $12.48 per hour.
What is the new minimum wage for minors aged 16 and 17?
The minimum wage for minors aged 16 and 17 will increase to $11.67 per hour, up from the previous rate of $10.60 per hour.
How will the tipped employee rate change?
The tipped employee rate will rise to $5.49 per hour, representing 40% of the full minimum wage, provided the employee receives at least $8.24 in tips.
What is the legislative background for these changes?
In July 2024, the Michigan Supreme Court reinstated the original versions of the state’s minimum wage and paid sick leave laws, setting a deadline of February 21, 2025, for these laws to take effect. In response, the Michigan legislature passed Senate Bill 8 (S.B. 8) and House Bill 4002 (H.B. 4002) to modify these laws, establishing a new schedule for minimum wage increases and adjustments for tipped employees.
What are the implications for employers?
Employers may face increased payroll expenses, potential pricing adjustments, and the need to review staffing strategies to manage costs effectively. It’s important for businesses to stay informed about these changes to ensure compliance and plan accordingly for the financial implications.
Key Features of the Minimum Wage Increase
| Feature | Details |
|---|---|
| Effective Date | January 1, 2026 |
| New Minimum Wage Rate | $13.73 per hour |
| Previous Rate | $12.48 per hour |
| Increase Amount | $1.25 per hour |
| New Minimum Wage for Minors (16-17 years old) | $11.67 per hour |
| New Tipped Employee Rate | $5.49 per hour (40% of the full minimum wage) |
| Legislative Background | Senate Bill 8 (S.B. 8) and House Bill 4002 (H.B. 4002) passed in February 2025 to modify minimum wage and paid sick leave laws |
| Employer Implications | Potential increased payroll expenses, need for pricing adjustments, and review of staffing strategies |
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DETROIT STAFF WRITER The DETROIT STAFF WRITER represents the experienced team at HEREDetroitMI.com, your go-to source for actionable local news and information in Detroit, Wayne County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Movement Electronic Music Festival, Detroit Grand Prix, and America's Thanksgiving Parade. Our coverage extends to key organizations like the Detroit Regional Chamber and Focus HOPE, plus leading businesses in automotive and healthcare that power the local economy such as General Motors, Ford Motor Company, and Henry Ford Health. As part of the broader HERE network, including HEREGrandRapids.com, HERENorthville.com, HERENovi.com, and HEREPlymouth.com, we provide comprehensive, credible insights into Michigan's dynamic landscape.
