LANSING, Mich. (WOOD) — Thousands of Michigan workers will usher in the New Year with a fatter paycheck.
The state’s minimum wage rate is slated to increase from $8.50 per hour to $8.90 per hour beginning Jan. 1, 2017. This is the state’s third increase toward its ultimate goal of $9.25 per hour in 2018.
The minimum wage increase applies to businesses with two or more employees age 16 or older. Tipped employees will also see a slight uptick in their minimum hourly wage, from $3.23 to $3.38 per hour.
However, state law allow employers to pay newly hired workers between 16 and 19 years old an hourly rate of $4.25 during their first 90 days of employment. The Workforce Opportunity Wage Act also allows Michigan employers to pay 85 percent of the minimum wage rate to 16 and 17-year-old employees, as long as the wage is still higher than the federal minimum wage of $7.25 per hour.
An estimated 101,000 Michigan workers were at or below minimum wage last year, according to the United States Department of Labor’s Bureau of Labor Statistics.