Michigan Chamber of Commerce issued the following announcement.
Michigan’s minimum wage likely will not increase in January, the state announced Friday. This is because of a provision in Michigan’s 2018 minimum wage law, which the Michigan
Chamber advocated for. That provision specifies a scheduled minimum wage increase shall not take effect in the upcoming year when the state’s annual unemployment rate for the
preceding calendar year is above 8.5 percent.
Michigan’s average unemployment rate for 2020 remains around 10.2 percent. This means effective January 1, 2021, Michigan’s minimum wage rate will almost certainly remain
at $9.65 an hour. The minimum wage rate for minors (age 16 and 17) will remain at $8.20 an hour and tipped employees’ rates of pay will remain at $3.67 (although, with tips,
tipped employees must make at least the full minimum wage rate or the employer must make up the shortfall [see details here]).
This announcement is good news for employers who continue to struggle to make payroll due to the pandemic. The “pause” in current law was advocated for by the Chamber in
2018 to avoid situations whereby government-mandated increases in wages would be avoided in extreme economic situations (e.g., a recessionary period).
Michigan’s minimum wage rate will increase to $9.87 in the first calendar year following a calendar year for which the annual unemployment rate is less than 8.5 percent, meaning
it’s possible the minimum wage will increase again on Jan. 1, 2022.
The state’s full announcement can be found here. Please contact Wendy Block with any questions at wblock@michamber.com
Original source can be found here.
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