Michigan minimum wage 2025: $12.48/hr
Current Michigan minimum wage for non-tipped workers, tipped workers, overtime rules, exemptions, scheduled increases, and how $12.48/hr compares to the federal rate and to other US states. Verified against Michigan's labor department.
Data last updated: Jan 15, 2025Key Takeaways
- Michigan minimum wage: $12.48/hr (effective 2025-02-21).
- Tipped minimum: $3.75/hr.
- Higher than federal: $5.23 above the $7.25 federal minimum.
- Next increase: Increasing annually as part of the restored Improved Workforce Opportunity Wage Act. Tipped minimum wage increasing to match regular minimum by 2029.
What is the minimum wage in Michigan?
The $Michigan minimum wage is $12.48 per hour as of 2025-02-21. A full-time employee working 40 hours per week at this rate earns approximately $25,958 per year in gross pay before taxes.
Michigan's rate exceeds the federal minimum of $7.25/hr by $5.23. When state and federal minimums differ, employers must pay whichever is higher, so Michigan employers must pay the state rate to all workers covered by state wage laws.
Tipped minimum wage in Michigan
Michigan allows employers to pay tipped employees a reduced base wage of $3.75/hr, provided that tips bring the employee's total hourly earnings to at least the full state minimum of $12.48/hr. This is called a "tip credit."
If a tipped employee's tips fall short of the standard minimum wage for any pay period, the employer must make up the difference. Example: a server earns $3.75/hr base plus $7.73/hr in tips during a slow shift. Because total earnings ($11.48/hr) are below the $12.48/hr standard minimum, the employer owes the difference.
How Michigan compares nationally
Across all 51 US jurisdictions, minimum wage ranges from $5.15/hr (Wyoming, the lowest) to $17.50/hr (District of Columbia, the highest). Michigan sits at #21 of 51, meaning it's in the upper middle.
Local minimum wages in Michigan
None. State preemption applies.
If a city or county has a higher local minimum wage, employers in that jurisdiction must pay the higher local rate. State law is a floor, not a ceiling, for local minimum wage ordinances.
Scheduled future increases
Increasing annually as part of the restored Improved Workforce Opportunity Wage Act. Tipped minimum wage increasing to match regular minimum by 2029.
Overtime rules in Michigan
Michigan requires overtime at 1.5x after 40 hours per week.
Minimum wage exemptions
Employers with fewer than 2 employees are exempt. Standard FLSA exemptions also apply.
What to do if you're underpaid
Underpayment below the legal minimum is a wage-and-hour law violation. Your options:
- File a state wage claim. The $Michigan labor department accepts wage claims and can pursue unpaid wages, penalties, and liquidated damages on your behalf. See the source links below for direct links.
- File a federal Department of Labor complaint. The US DOL Wage and Hour Division handles FLSA violations. Federal filings have a 2-year statute of limitations (3 years for willful violations).
- Consult an employment lawyer. Significant underpayment or retaliation claims often warrant a private attorney. Many employment lawyers work on contingency. See our Michigan employment lawyer directory.
- Document everything. Save pay stubs, timesheets, and employer communications. The burden of proof for unpaid wages usually rests on the employee.
Frequently Asked Questions
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What is the minimum wage in Michigan in 2025?
The Michigan minimum wage is $12.48 per hour for non-tipped workers, effective 2025-02-21. This is $5.23 higher than the federal minimum of $7.25/hr, so Michigan employers must pay the state rate. Michigan ranks #21 of 51 US jurisdictions by minimum wage level.
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What is the tipped minimum wage in Michigan?
The Michigan tipped minimum wage is $3.75 per hour. Employers can pay tipped employees this lower rate as long as tips bring their total hourly earnings up to at least the full state minimum wage ($12.48/hr). If tips don't make up the difference, the employer must cover the gap. The federal tipped minimum is $2.13/hr, so states with no separate tipped wage effectively require employers to pay the full minimum up front.
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Does Michigan pay higher than the federal minimum wage?
Yes. Michigan's $12.48/hr is $5.23 above the federal minimum of $7.25/hr. When state and federal minimums differ, employers must pay the higher of the two, so Michigan employers are required to pay the state rate.
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How much is a full-time minimum-wage job in Michigan?
At $12.48/hr for a standard 40-hour week, a full-time minimum-wage worker in Michigan earns approximately $25,958/year gross before taxes. Take-home pay varies by local tax rate, employee benefits, and whether the employer offers paid leave. Overtime hours (over 40/week, or in some states over 8/day) are paid at time-and-a-half or more.
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Are there local minimum wages in Michigan that differ from the state rate?
Yes. None. State preemption applies. When a local ordinance sets a higher minimum wage, employers in that jurisdiction must pay the higher local rate. Check your specific city or county's ordinance if you work in an urban area.
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Are minimum wage increases scheduled in Michigan?
Yes. Increasing annually as part of the restored Improved Workforce Opportunity Wage Act. Tipped minimum wage increasing to match regular minimum by 2029. Check the Michigan LARA – Wage and Hour for the current effective schedule.
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What happens if my employer pays less than the Michigan minimum wage?
Underpayment is a violation of state and federal wage-and-hour law. Remedies usually include recovery of unpaid wages, interest, liquidated damages (often doubling the amount owed), and attorney's fees. You can file a wage claim with the Michigan labor department, file a federal Department of Labor complaint, or bring a private lawsuit. The filing deadline varies; federal FLSA claims have a 2-year statute of limitations (3 years for willful violations). Consult a Michigan employment lawyer for significant underpayment claims.