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Raising the State Minimum Wage

This bill modifies Michigan's Improved Workforce Opportunity Wage Act by establishing a progressive minimum wage structure that increases the state's hourly minimum wage to $12.48 in February 2025, $13.73 in January 2026, and $15.00 in January 2027. The bill introduces an annual inflation adjustment mechanism starting in October 2027, where the state treasurer will calculate minimum wage increases based on the Consumer Price Index, though this adjustment will not take effect if the state's unemployment rate is 8.5% or higher. For tipped employees, the bill establishes a graduated minimum wage rate that starts at 38% of the standard minimum wage in 2025 and incrementally increases to 50% by 2031, with specific conditions such as employees retaining their full gratuities and employers providing written consent. The legislation also outlines enforcement mechanisms, including the ability for employees to bring civil actions for wage violations and potential fines for employers who fail to comply, with penalties ranging from $1,000 to $2,500 depending on the type of violation. The bill includes several exemptions for certain types of employees, such as those covered by federal labor standards, domestic service workers, summer camp employees, and agricultural workers, ensuring that the minimum wage provisions do not adversely impact specific employment sectors.1