LANSING, MI (WHTC) – Employees in Michigan will see a minimum wage increase effective January 1, 2017.
The minimum wage will be increased from $8.50 to $8.90, marking the third step of a gradual 25 percent increase and will culminate in a $9.25 per hour rate in 2018.
According to Licensing and Regulatory Affairs (LARA), Public Act 138 the Workforce Opportunity Wage Act (WOWA) of 2014 took effect on May 27, 2014, replacing the Michigan Minimum Wage and Overtime Act (Act 154).
WOWA is enforced by the Wage and Hour Division – an agency within the Bureau of Employment Relations. The law applies to Michigan employers with two or more employees, age 16 and older. A copy of WOWA and related resources including the required poster may be obtained by visiting the Wage and Hour Division website.
Act 138 allows an employer to pay a newly hired employee, ages 16 to 19, the hourly rate of $4.25 for the first 90 days of employment.
WOWA also allows an employer in Michigan to pay 85 percent of the minimum hourly wage rate to employees aged 16 and 17. Employers covered by both state and federal minimum wage law must pay the higher of the two rates. Information on federal minimum wage may be obtained by contacting the U. S. Department of Labor at 866-487-9243.
Overtime Requirements
Employees covered by the overtime provisions of WOWA must be paid one and a half times their regular rate of pay for hours worked exceeding 40 hours in a work week.
For further questions or information, call the Wage and Hour Division at 855-464-9243 or visit the agency’s website.
