Michigan’s Minimum Wage Increases in 2025: Stay Compliant with TCWGlobal
Post by
Bailey Burlingame
February 20, 2025
February 20, 2025
Michigan workers can expect two significant minimum wage increases in 2025, following a Michigan Supreme Court ruling that reinstated the original provisions of the Improved Workforce Opportunity Wage Act (IWOWA) of 2018.
First Minimum Wage Increase: January 1, 2025
The first wage adjustment will take effect at the start of the new year. On January 1, 2025, Michigan’s minimum hourly wage will increase from $10.33 to $10.56 as part of an annual inflation-based adjustment. For workers under 18, the 85% rate will rise from $8.78 to $8.98 per hour.
Second Minimum Wage Increase: February 21, 2025
A more substantial increase will follow on February 21, 2025, when the minimum hourly wage jumps to $12.48, in accordance with the court’s decision. The 85% wage rate for minors will adjust to $6.49 per hour.
Future Minimum Wage Projections
The reinstated legislation mandates continued annual increases every February 21:
- 2026: $13.29 per hour
- 2027: $14.16 per hour
- 2028: $14.97 per hour
Stay Compliant with TCWGlobal’s Employer of Record Services
Keeping up with multiple minimum wage changes across the states can be overwhelming. That’s where TCWGlobal comes in. As your trusted Employer of Record (EOR), we handle all payroll compliance requirements, ensuring that your workforce is paid correctly, on time, and in full compliance with evolving wage laws. Our dedicated payroll specialists monitor and audit wage regulations, so you don’t have to—saving your company valuable time and resources.
The Cost of Non-Compliance
Failing to meet minimum wage requirements can result in expensive lawsuits, including class-action cases like PAGA (Private Attorneys General Act) claims. Protect your business by partnering with TCWGlobal before hiring across the U.S. Let us take the burden of payroll administration off your shoulders so you can focus on scaling your business.
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