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Effective Jan. 1, 2017, minimum wage employees in Michigan will see an increase of 40 cents per hour from $8.50 to $8.90. For 2017 budgets that translates to an extra $16 per week per full-time employee, or $832 per year. The law, Public Act 138 known as the Workforce Opportunity Wage Act (WOWA) of 2014 took effect on May 27, 2014 when minimum wage was $7.90, which has gradually increased to the current $8.50. There will be one more increase on Jan. 1, 2018 to the final rate of $9.25.
There is a youth training wage that allows an employer to pay a newly hired employee aged 16 to 19 the hourly rate of $4.25 for the first 90 days of employment. Additionally, there is a provision that allows an employer to pay 85 percent or $7.57 to employees aged 16 and 17. The minimum hourly rate for an employee subject to the tip credit provisions is $3.38 per hour. Finally, employers covered by both state and federal minimum wage law must pay the higher of the two rates.

How do other states compare? Click here to see current minimum wages, highlights and future enacted increases broken down by state.