Michigan's Minimum Wage Set to Rise in 2026: Tipped Workers Affected

Beginning January 1, 2026, Michigan will implement a significant increase in its minimum wage, bringing it up to $13.73 per hour from the existing $12.48. This adjustment aims to benefit workers across various industries, enhancing their earning potential as the cost of living evolves. This wage rise, however, does not uniformly affect all employees. Notably, workers who earn tips, as well as those aged 16 and 17, will experience different adjustments. Specifically, the minimum wage for minors will be based at 85% of the standard rate, resulting in an increase from $10.60 to $11.67 per hour. Meanwhile, tipped employees will enjoy a wage of $5.49 per hour, contingent on receiving at least $8.24 in tips, which is 40% of the new minimum wage. The forthcoming changes are the result of recent legislative measures that revised a previous proposal aimed at establishing higher wages. Looking further into the future, Michigan's minimum wage is projected to reach $15 by 2027, with adjustments tied to inflation thereafter. The minimum wage adjustments have ignited debate among advocacy groups. Many are currently rallying for a campaign that seeks to equalize the minimum wage for tipped workers by 2030, pushing for a fair standard across all employment sectors. Essential Facts About the Minimum Wage Adjustment Effective January 1, 2026: The minimum hourly wage will increase from $12.48 to $13.73. Employees aged 16 and 17 will see their wage rise from $10.60 to $11.67 per hour. Tipped workers will have a minimum wage of $5.49 per hour, assuming they earn at least $8.24 in tips. The training wage for new hires under 20 will stay at $4.25 per hour for their initial 90 days.