Michigan’s new minimum wage, earned sick time laws explained
Watershed Voice seeks to eliminate confusion by sharing the key facts.
Two laws affecting Michigan’s workers and employers go into effect on February 21, 2025. Watershed Voice seeks to eliminate confusion by sharing the key facts.
Minimum wage increases for the second time on February 21, following an initial increase on January 1. This is because of a Michigan Supreme Court ruling in favor of the Improved Opportunity Wage Act (IWOWA)’s schedule.
The minimum hourly wage rate will go from $10.33 on December 31, 2024, to $10.56 on January 1, 2025, and $12.48 on February 21, 2025. It will increase to $13.29 on February 21, 2026.
Minors under the age of 18 may be paid 85% of the minimum hourly wage rate. On December 31, 2024, that is $8.78. On January 1, 2025, it’s $8.98. It will be $10.61 on February 21, 2025, with an increase to $11.30 on February 21, 2026.
Tipped employees’ minimum hourly wages will go from $3.93 at the end of 2024 to $4.01 for most of January and February 2025. On February 21, the minimum wage goes to $5.99, or 48% of the minimum hourly wage rate for non-tipped employees. On February 26, the minimum wage for tipped employees rises to $7.97, or 60% of minimum hourly wage rate for non-tipped employees.
Effective February 21, 2030, there will be no difference in minimum wage rates for non-tipped and tipped employees.
Also on February 21, 2025, Michigan’s Earned Sick Time Act (ESTA) takes effect. This is a replacement for the Paid Medical Leave Act (PMLA).
ESTA’s components include up to 72 hours of sick leave annually for all employers, and up to 40 hours of paid sick leave and 32 hours of unpaid leave for businesses with fewer than 10 employees. The State of Michigan has a frequently asked questions page with topics including whether an employer can allow more than 72 hours of earned sick time to be accrued and used.
“The ESTA is the minimum sick leave requirement,” according to the State of Michigan. “Employers may allow employees to accrue more than 72 hours of earned sick leave in the 12-month period. Likewise, employers are permitted by the ESTA to limit the use of earned sick time to 72 hours per 12-month period, but employers may allow employees to use more.”
All unused earned sick time carries over from year to year. However, an employer is not required to permit an employee to use more than the annual allowed maximum time (paid or unpaid) in a 12-month period.
More information about Michigan’s wages and sick time laws are available at the state’s Labor and Economic Opportunity website.
Frank Stanko is a staff writer for Watershed Voice.
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