This browser does not support the Video element.
The Michigan minimum wage is about to go up - here's why
A complicated court case was finally settled in Michigan's high judicial office. It had to do with the constitutional bounds of a legislature. But it's workers and business owners that will feel the effects.
(FOX 2) - Among the biggest changes coming to Michigan next year is an increase in the state's minimum wage.
Workers can expect two increases in 2025, with the second bumping the minimum wage up by almost $2. While it's the state's responsibility to update the base wage rate that businesses must pay their employees, the upcoming hike is tied to a court ruling earlier this year.
The first increase will raise the minimum wage from $10.33 to $10.56 an hour. That increase is tied to inflation.
The second increase will take effect in February, pushing the rate up to $12.48 an hour. That increase is thanks to a state supreme court ruling that overturned a lower court ruling in July.
The state's Department of Labor and Economic Opportunity announced the minimum wage rate increase schedule for 2025 after the state Supreme Court ruled in a years-long case over a decision to adopt and amend a ballot initiative that proposed raising the minimum wage.
Michigan minimum wage schedule
Michigan unveiled the minimum wage schedule for 2025 earlier in October.
After the second increase goes into effect, the following minimum wage hikes will follow the below schedule:
- Feb. 21, 2025 - $12.48
- Feb. 21, 2026 - $13.29
- Feb. 21, 2027 - $14.16
- Feb. 21, 2028 - $14.97
There will also be a minimum wage increase for hourly wage and tipped employees:
- Feb. 21, 2025 - $5.99
- Feb. 21, 2026 - $7.97
- Feb. 21, 2027 - $9.91
- Feb. 21, 2028 - $11.98
What's behind the wage hike?
Over the summer, the Michigan Supreme Court reversed a lower court ruling that held in place a decision by the legislature in 2018 to "adopt and amend" a ballot proposal dealing with the minimum wage.
The proposal initially would have raised the state minimum wage and boosted earned sick time for hourly workers. Instead of allowing the proposal to go before voters during the election, the legislature chose to adopt the proposal before watering it down.
This strategy reduced the wage hike and was later the source of a lawsuit arguing it was unconstitutional.
This past summer, by a 4-3 vote, the high court sided with the plaintiffs and ordered the proposal's original intention to be reinstated. After seeking clarification from the court, the treasury released its updated schedule, starting with $12.48 in February.