Michigan Minimum Wage Set To Increase July 1st, 2008

Beginning July 1st, 2008, Michigan’s minimum wage will increase to $7.40 while the “youth sub-minimum wage” for employees age 16 & 17 will increase to $6.29. These increases are applicable to employers with two or more employees and are the last of three increases approved in 2006 by the state legislature under Senate Bill 318 and signed into law by Governor Granholm (the minimum wage increased to $6.95 on October 1, 2006 and then to $7.15 on July 1, 2007).

The minimum wage for tipped employees will not increase but employers must make sure that these employees earn at least $7.40 an hour through a combination of tips and a minimum wage rate of $2.65.  Agricultural workers, including those paid on a piece-rate basis, will continue to be covered by Michigan’s minimum wage law.  Michigan law excludes from coverage any employment that is subject to the Federal Fair Labor Standards Act (“FLSA”) unless the state wage rate is higher than the federal minimum wage.

For questions about the new Michigan minimum wage increase or the FLSA, contact a member of the Berry Moorman Labor and Employment Group.