Michigan’s minimum wage is $13.73 an hour in 2026, and it rises to $15.00 on January 1, 2027 [1][2]. Tipped workers can be paid a lower cash wage, but that share is climbing every year under a law the Legislature passed in February 2025 [3].
At a glance
- Minimum wage, 2026
- $13.73 an hour since January 1, 2026 [2]
- Tipped cash wage, 2026
- $5.49 an hour (40%), tips cover up to $8.24 [1]
- Next increase
- $15.00 on January 1, 2027 [1][2]
- Tipped share by 2031
- 50% of the full minimum wage [1]
- Who must pay it
- Employers with 2 or more employees [2]
| Starting | Minimum wage | Tipped cash wage (share) | Tipped cash wage (per hour) |
|---|---|---|---|
| Feb 21, 2025 | $12.48 | 38% | $4.74 |
| Jan 1, 2026 | $13.73 | 40% | $5.49 |
| Jan 1, 2027 | $15.00 | 42% | $6.30 |
What changed in 2025
On February 21, 2025, the governor signed Public Act 1 of 2025, which took effect right away [3]. It came after the Michigan Supreme Court ruled in 2024 that the Legislature’s handling of a ballot-initiated wage law broke the state constitution, and gave lawmakers time before the original law took effect [3].
The 2025 law did three main things [3]:
- Raised the wage faster. The rate went from $10.56 to $12.48 on February 21, 2025, then to $13.73 in 2026, and to $15.00 in 2027.
- Kept the tip credit, but shrank it. The ballot initiative had aimed to end the tip credit . The 2025 law kept it, but the cash wage employers must pay tipped workers rises every year as a share of the full minimum wage.
- Kept managers out of tip pools. Managers and supervisors can’t share in employees’ tip pools or take any part of their tips.
Tipped workers: the phase-in
In 2026 the cash wage for tipped workers is $5.49 an hour, which is 40% of $13.73. Tips can count for the other $8.24 [1]. If a worker’s wages plus tips don’t add up to at least $13.73 for every hour worked, the employer has to pay the difference.
The share goes up each year: to 42% in 2027 [3], when the full rate is $15.00, and on up until the tipped cash wage reaches 50% of the state minimum wage in 2031, according to the U.S. Department of Labor [1].
After 2027
Once the rate reaches $15.00, it’s adjusted each year for inflation [1][2]. The state treasurer multiplies the rate by any increase in the Midwest consumer price index, and the new rate takes effect the following January. The increase is skipped for a year when Michigan’s unemployment rate for the year before was 8.5% or higher [3].
Who’s covered
Michigan’s law applies to employers with 2 or more employees [2]. Because the state rate is higher than the federal one, it also applies to jobs covered by the federal Fair Labor Standards Act [2]. Overtime pay starts after 40 hours in a workweek [2].
If you’re underpaid
Write down your hours, pay and tips. Michigan’s Department of Labor and Economic Opportunity (LEO) Wage and Hour Division takes complaints about unpaid minimum wage and overtime; its pages are at michigan.gov/leo.
Sources
Common questions
What is the minimum wage in Michigan in 2026?
$13.73 an hour since January 1, 2026, for employers with 2 or more employees. It goes up to $15.00 an hour on January 1, 2027.
What is the tipped minimum wage in Michigan in 2026?
$5.49 an hour in cash, which is 40% of the full minimum wage. Tips can cover up to $8.24 of each hour, but if wages plus tips come to less than $13.73 an hour, the employer has to make up the difference.
Will Michigan's tipped wage keep going up?
Yes. Under the 2025 law, the tipped cash wage rises as a share of the full minimum wage each year, to 42% in 2027, and the U.S. Department of Labor reports it reaches 50% of the state minimum wage in 2031.