Michigan's new minimum wage: How much rates will increase each year

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.

LANSING, Mich. (FOX 2) - Michigan's new minimum wage will rise by more than two dollars next year over the course of two separate increases - one in January and another in February.

It's a substantial increase for Michigan's minimum hourly wage and is related to a recent court decision that has upended the rules over how much workers should be paid in the state.

Beginning Jan. 1, the minimum wage will rise from $10.33 to $10.56 per hour. Then, on Feb. 21, the minimum wage will rise again to $12.48 per hour. Workers that get paid with tips will also see their hourly pay rise from $3.93 to $4.01 an hour in January, and then up to $5.99 in February.

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.

The Michigan Supreme Court ruled on the case in July, overturning a lower court's decision.

After seeking clarification from the court, the state has rolled out its updated schedule for when the minimum wage will rise in 2025 and each annual increase through 2028.