Beginning January 1, 2022, Michigan employees will see an automatic increase in their pay statements. In the new year, Michigan employees will be guaranteed a minimum wage of $9.87 per hour. This is an increase from the previous $9.65 per hour employees were receiving after an increase in March of 2019.
The increase to $9.87 was scheduled to occur in 2021. However, because the average unemployment rate for 2020 was above 8.5%, the rate increase did not occur. As readers know, the State of Michigan saw record high unemployment due to the COVID-19 pandemic in 2020. It is unlikely we will see such an unemployment rate again.
This recent increase is the third of twelve increases scheduled to occur until the Michigan minimum wage reaches $12.05 as required Michigan Compiled Laws 408.934. The minimum wage is set to increase to $12.05 on January 1, 2030.
This increase, as well as the increases to come, are a result of Public Act 368 of 2018 which was signed into law on December 14, 2018. This Act came after a ballot proposal which would have placed the issue on the ballot for the November 2018 general election. Instead of leaving the issues to voters, the Michigan Legislature acted promptly codifying the issue and guaranteeing pay increases for Michigan workers.
This increase, and the increases to come, can lead to many different issues ensuring you are receiving proper compensation or paying your employees the proper amount. If you have any questions about the minimum wage increase(s), or other wage and hour issues, please contact attorney Tim P. Seeger at Grewal Law PLLC for assistance.
Tim represents clients in the areas of Employment Law, Administrative Law, Family Law, Contracts, Business Litigation, Personal Injury, and Probate Law. Tim maintains a strong desire to help those in need and spends the time necessary to provide honest legal guidance.