Michigan Minimum Wage in 2026
Michigan’s minimum wage is $13.73 an hour in 2026 and rises to $15.00 on January 1, 2027. The rates come from the Department of Labor and Economic Opportunity, which enforces the law. It covers employers with two or more employees aged 16 or older, and where state and federal rules differ, the stricter one applies (LEO FAQ).
Key facts
- The minimum is $13.73 an hour in 2026 (LEO).
- It rises to $15.00 on January 1, 2027, then with inflation each year (MCL 408.934).
- Tipped workers get at least $5.49 an hour, rising to $6.30 in 2027 (LEO FAQ).
- A 2024 Michigan Supreme Court ruling restored the law voters had petitioned for (opinion).
- $13.73
- an hour, the state minimum wage
- $28,558
- a year for full-time work, before taxes
- $15,080
- a year at the federal $7.25 minimum
A full-time worker at the minimum will earn about $2,642 more a year once the $15.00 rate starts. That is $28,558 a year now and $31,200 in 2027, at 40 hours a week for 52 weeks. Neighboring Ohio ($11.00), Indiana ($7.25), Wisconsin ($7.25) pay less, and the federal minimum is still $7.25.
Tipped Minimum Wage in Michigan
Tipped workers in Michigan must be paid at least $5.49 an hour in 2026, and that cash wage grows faster than the minimum. The tipped wage is a share of the full minimum: 40% in 2026, 42% in 2027, and two points more each year until it reaches 50% in 2031 (MCL 408.934d).
The lower rate applies only if you keep your own tips, report them, and were told about the rule in writing when you were hired. Your wage plus tips must reach the full minimum for every hour, or your employer pays the shortfall (LEO FAQ).
| Category | Value |
|---|---|
| 2025 | 38% |
| 2026 | 40% |
| 2027 | 42% |
| 2028 | 44% |
| 2029 | 46% |
| 2030 | 48% |
| 2031 | 50% |
Source: Improved Workforce Opportunity Wage Act, MCL 408.934d. Each step takes effect January 1; 2025's took effect February 21.
Minimum Wage for Teens and New Hires
Employers may pay workers under 18 85% of the minimum, $11.67 an hour in 2026. Newly hired workers under 20 may be paid a training wage of $4.25 an hour for their first 90 days on the job (LEO FAQ).
Michigan minimum wage rates by date
Source: Michigan Department of Labor and Economic Opportunity, Minimum Wage and Overtime FAQ
How Michigan Got to $15
Michigan’s $15 schedule comes from a 2018 citizen petition that the Legislature adopted and then rewrote. Lawmakers passed the petition in September 2018, which kept it off the November ballot, and amended it in the same session to scale back the raises. On July 31, 2024, the Michigan Supreme Court ruled that this adopt-and-amend move violated the people’s right to initiate laws (Mothering Justice v Attorney General).
The ruling revived the original law starting February 21, 2025, and the Legislature then set a new schedule. Senate Bill 8, signed as 2025 Public Act 1, took effect the same day. It set $12.48 for 2025, $13.73 for 2026 and $15.00 for 2027, and set the tipped wage to climb to 50% of the minimum by 2031 (MCL 408.934; LEO).
What Happens After $15
Starting in October 2027, the state treasurer will raise the minimum each year by the inflation rate for the Midwest. The treasurer publishes the new rate by November 1, and it takes effect the following January 1. No increase happens if Michigan’s unemployment rate was 8.5% or more the year before (MCL 408.934).
Michigan minimum wage, by situation
I work for tips
- Your cash wage must be at least $5.49 an hour in 2026 and $6.30 in 2027.
- Your wage plus reported tips must reach $13.73 for every hour.
- If tips fall short, your employer owes the difference.
MCL 408.934d and the LEO FAQ.
My pay is below the minimum
- Keep pay stubs and a record of your hours.
- Ask your employer in writing to correct it.
- File a wage complaint with LEO's Wage and Hour Division.
LEO enforces the Improved Workforce Opportunity Wage Act.
I am under 18
- You may be paid $11.67 an hour in 2026, 85% of the minimum.
- If you are a new hire under 20, you may be paid $4.25 for your first 90 days.
- After 90 days, the training wage ends.
LEO Minimum Wage and Overtime FAQ.
Where Things Stand
Michigan minimum wage laws
As of October 1, 2026
- Minimum wage of $13.73 (2026) Law, Since January 1, 2026
LEO lists $13.73 an hour, $5.49 for tipped workers and $11.67 for workers under 18. (source)
- $15.00 minimum wage Law, From January 1, 2027
The tipped wage rises to $6.30, or 42% of the minimum, the same day. (source)
- Yearly inflation adjustments Law, First calculated October 2027
The state treasurer raises the rate by Midwest inflation each January 1 from 2028, unless state unemployment reached 8.5% the year before. (source)
- Tipped wage phase-in to 50% Law, Through January 1, 2031
The tipped wage rises two points a year, from 40% of the minimum in 2026 to 50% in 2031. (source)
Source: Michigan Department of Labor and Economic Opportunity; Michigan Compiled Laws 408.934 and 408.934d
Michigan Minimum Wage Questions
What is the minimum wage in Michigan in 2026?
$13.73 an hour since January 1, 2026. Tipped workers must be paid at least $5.49 an hour, and workers under 18 may be paid $11.67.
When does Michigan's minimum wage go up to $15?
On January 1, 2027. After that, the state treasurer raises the rate each January 1 by the Midwest inflation rate, starting in 2028, unless state unemployment was 8.5% or higher the year before.
What is the tipped minimum wage in Michigan?
$5.49 an hour in 2026, which is 40% of the minimum, and $6.30 in 2027. Your wage plus reported tips must reach the full minimum, or your employer pays the difference. The tipped share rises two points a year until it reaches 50% in 2031.
Can employers pay teenagers less in Michigan?
Yes. Workers under 18 may be paid 85% of the minimum, $11.67 in 2026. Newly hired workers under 20 may be paid $4.25 an hour for their first 90 days.
Why did Michigan's minimum wage jump in 2025?
In July 2024, the Michigan Supreme Court ruled that lawmakers broke the state constitution in 2018 when they adopted a citizen wage petition and then rewrote it in the same session. The original law took effect February 21, 2025, and a 2025 law set the current schedule.
What You Can Do
- Check your first paycheck of 2027. Every hour worked from January 1, 2027 should pay at least $15.00, or $6.30 plus tips.
- Put wage problems in writing and keep copies, then file with LEO’s Wage and Hour Division if they are not fixed.
- Share this with coworkers who work for tips. The tipped cash wage rises every January through 2031.
- Ask your state legislators where they stand on the tipped wage schedule. Every seat is on the November 3, 2026 ballot. Our letter-writing guide shows how.
- Compare other states in our national minimum wage explainer.