Amid effort to raise minimum wage in Michigan, here’s what new rate will be in 2024

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LANSING, Mich. (FOX 2) - The minimum wage in Michigan will rise to $10.33 an hour at the start of the new year.

The Department of Labor and Economic Opportunity announced the increase from $10.10 an hour beginning on Jan. 1, 2024. Meanwhile, minors aged 16 and 17 years old who receive 85% of the minimum wage will see their pay rate rise to $8.78 an hour.

Tipped employees will see their pay increase to $3.93 an hour.

Michigan's minimum wage is set by the LEO, which is instructed by the Improved Workforce Opportunity Wage Act of 2018.

All of this could change thanks to a lawsuit challenging an amended version of the law after a lower court decision in 2022. The ruling voided changes made to the law in 2018 and would have increased the minimum wage in the state while expanding paid sick leave time.

However, the Court of Claims decision was then reversed by the Michigan Court of Appeals. The lawsuit is now in front of the Michigan Supreme Court.

The back-and-forth stems from a decision by the state legislature in 2018 to amend a law that was enacted via ballot proposal. The original proposal would have raised the minimum wage for both hourly and service employees.

The updated wages would come to $13.03 for hourly workers and $11.73 for tipped workers. But a controversial move by the Republican-led legislature at the time drastically weakened the enacted proposal.

MORE: Michigan high court to hear challenge to rule that weakened state's minimum wage rule

Then in 2022, the Court of Claims ruled the amendments unconstitutional before staying the decision until February 2023 to give time for employers to prepare for the change. An appeal from the restaurant industry reversed the decision in January. That order has been appealed to the state supreme court, which agreed to take up the issue.

Raise the Wage ballot proposal

A separate effort to raise Michigan's minimum wage to $15 an hour is also in the courts after the board that approves ballot proposals for citizens to vote on deadlocked on certifying the initiative.

The Michigan Board of State Canvassers refused to certify the proposal in October after the two Republicans on the board said they were not notified about a change to the petition language. The two Democratic board members voted to certify the proposal, deadlocking the decision.

On Oct. 30, One Fair Wage, the group behind the ballot proposal, filed a lawsuit over the board's ruling.

If it's approved, the proposal would be on the statewide ballot in 2024.