Michigan's minimum wage increasing on Friday

Posted at 10:59 AM, Dec 31, 2015
and last updated 2016-01-01 07:18:46-05

Beginning Friday, minimum wage workers in Michigan will see a rise in their paycheck as the minimum wage is increasing for the first time since 2014.

The state's hourly minimum wage will increase 35 cents from $8.15 to $8.50. That works out to $14 more a week and $728 more a year for full-time workers.

The hourly minimum wage is now up more than $1 from before Sept. 1, 2014, and it will gradually increase every year. It's part of the state's Workforce Opportunity Wage Act of 2014 where the minimum wage is boosted over time.

The tipped employee hourly minimum wage will also increase from $3.10 to $3.23.

Michigan is among 14 states where higher minimum wages will go into effect in the new year, according to the National Conference of State Legislatures. Michigan's wage will be tied for 14th-highest among the 45 states with a minimum wage.

The amount that employers can pay 16- and 17-year-olds — which is 85 percent of the minimum wage — will stay at $7.25, the equivalent of the federal minimum wage. But it will increase to $7.57 in 2017 and $7.86 in 2018.

On Jan. 1, 2017, the wage will again increase, this time to $8.40 and then to $9.25 on Jan. 1, 2018.