Minimum Wage Workers in Michigan will Make More Money Starting in 2022 (But Not Much)
Any little bit helps, but this is really "a little bit".
On January 1, 2022, workers making minimum wage in the State of Michigan will get an increase in pay of 22 cents per hour. The rate is going up from $9.65 to $9.87 for the new year. It is part of Michigan's 'Improved Workforce Opportunity Wage Act of 2018' as part of a system that established the annual schedule and increases in pay.
The Michigan Wage & Hour Division has announced that while the law does prohibit scheduled increases when the state's annual average unemployment rate for the previous calendar year is above 8.5%, it is highly unlikely Michigan will exceed this threshold causing another delay as occurred in 2021, due to the COVID-19 pandemic that began in the state and around the United States in 2020.
The state's 2021 annual unemployment rate, which is calculated by the Bureau of Labor Statistics (BLS), U.S. Department of Labor, is figured out by using both average labor force and unemployment levels for January through December. The annual average unemployment rate for 2021 is expected to remain well below 8.5%.
Here are all the other changes effective January 1, 2022:
- Michigan's minimum wage will increase to $9.87 an hour
- The 85% rate for minors aged 16 and 17 increases to $8.39 an hour
- Tipped employees' rates of pay increase to $3.75 an hour
- The training wage of $4.25 an hour for newly hired employees ages 16 to 19 for their first 90 days of employment remains unchanged
A copy of the Improved Workforce Opportunity Wage Act and related resources, including the required poster, may be obtained for free by visiting www.michigan.gov/wagehour