Minimum wage employees in Michigan currently make $10.33 an hour. If you are a tipped worker, hourly wages from your employer are 38% of that, $3.93 an hour. Because of a Michigan Supreme Court ruling, this model changes on February 21, 2025.
On that day, the minimum hourly wage will be $10, plus what amount the Michigan state treasurer determines as meeting an adjustment for inflation. The treasurer will use July 31, 2024, as the day to base the adjustment on. Tipped workers’ hourly wages on February 21, 2025, will increase to 48% of what is the minimum wage.
From 2026-2028, the minimum wage and tip credit will annually change on February 21.
- 2026: Minimum wage is $10.65 plus the amount determined by an inflation adjustment based on July 31, 2024. The tip credit is 60% of minimum wage.
- 2027: Minimum wage is $11.35 plus the amount determined by an inflation adjustment based on July 31, 2024. The tip credit is 70% of minimum wage.
- 2028: Minimum wage is $12 plus the amount determined by an inflation adjustment based on July 31, 2024. The tip credit is 80% of minimum wage.
Beginning February 21, 2029, Michigan’s state treasurer will annually calculate the inflation-adjusted minimum wage. That same day, tip credits will no longer exist.
Watershed Voice contacted multiple businesses in Three Rivers, including some where customers are encouraged to leave tips and several with employees the public might assume are paid the minimum wage. Employees of three businesses answered our questions.
“We end up working off of booth rent and whatever the tattoo artists charge,” said William Hayes, a tattoo artist at Portfolio Ink. “It’s kind of the same concept as hair stylists, where we rent out a booth and we all have our own different set rates.”
Tom Lowry, owner of Lowry’s Books in Three Rivers and Sturgis, said the stores are on track to have wages meet if not exceed the new state model. The stores have been following a current multi-year state model which Lowry said has been in effect for approximately a decade.
“There was a period during COVID where they said you didn’t have to (increase wages) that year, but I continued to go up each year, so I’m on track with that schedule,” Lowry said.
The wages schedule introduced about 12 years ago by the Michigan Legislature was built to be realistic and allow for livability, Lowry said. He says it’s been a good approach to take and that he’s been able to be competitive with other employers while following that model.
Karra Bailey is one of four co-managers at GQT Three Rivers 6, which has 12 employees. Wages for teenage employees are above minimum wage and wages for adults are “pretty high” above minimum wage, Bailey said.
“Most of our cast members have other jobs, so this is kind of like their backup job, their second job,” Bailey said.
Frank Stanko is a staff writer with Watershed Voice.
