LANSING, Mich. (Michigan News Source) – Michigan’s legislature will see a shift in power in 2025, and workers in the state’s hospitality industry hope that saves their tips.
Michigan voters flipped the House in November and put Republicans in charge. Several GOP lawmakers told Michigan News Source that the tipped wage changes that Democrats refused to fix in the lame duck session will be their first priority.
Minimum wage increases.
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The standard minimum wage in Michigan increased on Jan. 1 from $10.33 to $10.56. That marks the the first of two scheduled increases to the base wage in the state slated for 2025.
The minimum wage for minors will increase from $8.78 an hour to $8.98 an hour.
What about tips?
The tipped minimum wage will increase from $3.93 an hour to $4.01 an hour. That’s the base rate for service workers and tips make up the rest of their hourly rate, for now.
Those new minimum wage rates will only be in place for a few weeks. Starting Feb. 21, minimum wage will rise again due to a Michigan Supreme Court July 2024 ruling. Starting Feb. 21, minimum wage will be $12.48 an hour for adults, $10.61 an hour for minors, and the tipped minimum wage will be $5.99 an hour.
Future increases.
The year 2025 starts a new minimum wage scale, with payment rising to nearly $15 an hour by 2029. Tipped wages will be eliminated in 2030.
Sick time changes.
In addition, a new law will allow workers to earn an hour of sick time for every 30 hours worked. Companies with 10 or more employees must provide at least 72 hours of paid sick time each year.
Businesses with fewer than 10 employees must offer 40 hours of paid sick leave annually. The other 32 hours would be marked unpaid sick leave.
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