As of January 1, 2026, Michigan's minimum wage is $13.73 per hour, well above the federal floor of $7.25. Tipped employees must be paid a cash wage of at least $5.49 per hour (40% of the full minimum wage), and their tips plus that cash wage must add up to at least the full $13.73; if they fall short, the employer is legally required to make up the difference. Michigan's rate is set by state statute and is scheduled to rise again on a fixed timetable, after which it is tied to inflation. Critically, no Michigan city or county is allowed to set a higher local minimum wage, because state law preempts local wage ordinances. These figures change every year, so always confirm the current numbers with the Michigan Department of Labor and Economic Opportunity (LEO) before relying on them.
Michigan's minimum wage compared to the federal rate
The federal Fair Labor Standards Act (FLSA) sets a national minimum wage of $7.25 per hour, a figure that has not changed since 2009. When a state's minimum wage is higher than the federal rate, employees are entitled to the higher state figure. That is the situation in Michigan: at $13.73 per hour in 2026, the state minimum is nearly twice the federal baseline, so virtually all covered Michigan workers are paid under the Michigan standard rather than the FLSA floor.
Michigan's wage law is the Improved Workforce Opportunity Wage Act. It generally applies to employers with two or more employees who are at least 16 years old. Some workers remain governed primarily by federal rules, but for most hourly employees in the state, the Michigan rate is the number that matters.
The tipped wage and the tip credit
Michigan, like most states, allows employers to take a "tip credit" for employees who customarily and regularly receive tips, such as servers and bartenders. Under this system, the employer pays a lower direct cash wage and counts a portion of the worker's tips toward the minimum wage obligation.
For 2026, the tipped cash wage is $5.49 per hour, which equals 40% of the full $13.73 minimum wage. The key protection is this: the cash wage plus actual tips must equal or exceed the full minimum wage for every hour worked. If a tipped employee's tips do not bring total earnings up to at least $13.73 per hour, the employer must pay the shortfall. In practical terms, a worker must receive at least about $8.24 per hour in tips for the tip credit to be fully satisfied at the 2026 rates.
Michigan's tipped wage is far more generous to workers than the federal tipped minimum, which allows a cash wage as low as $2.13 per hour. Following litigation and legislation in 2024 and 2025 over Michigan's wage and sick-leave laws, the state kept the tip credit but set the tipped cash wage as a rising percentage of the regular minimum wage. That percentage is 40% in 2026 and is scheduled to climb in steps over the following years, eventually reaching 50% of the minimum wage. Because the tipped figure is pegged to a percentage of a changing minimum wage, it shifts every year, so tipped workers and restaurant employers in particular should verify the current cash wage annually.
Scheduled increases and inflation indexing
Michigan's minimum wage does not stay flat. The statute lays out a series of scheduled increases. The rate rose to $12.48 in early 2025 and to $13.73 on January 1, 2026, with at least one more scheduled step increase to follow in 2027. After the scheduled increases are complete, Michigan's minimum wage is designed to be adjusted for inflation, with the state calculating future increases based on changes in the cost of living.
This indexing matters because it means the minimum wage will keep rising automatically rather than remaining frozen the way the federal rate has been for more than a decade. The exact future-year figures depend on the inflation calculation and on any further legislative changes, so the published number for any given year should be treated as the authoritative source. The state typically announces the upcoming year's rate in advance, usually in the fall before it takes effect.
Youth, training, and other special rates
Michigan law allows a few sub-minimum rates for specific groups of workers:
- Minors ages 16 and 17. Employers may pay 16- and 17-year-olds 85% of the minimum wage. In 2026 that works out to roughly $11.67 per hour.
- Training wage. A training wage of $4.25 per hour may be paid to newly hired employees ages 16 to 19 for their first 90 days of employment. This rate has not increased with the regular minimum and cannot be used to displace other workers.
- Other categories. Certain workers may be subject to different rules or exemptions under state or federal law. When state and federal coverage overlap, employees are entitled to whichever standard is more protective.
No local minimum wages in Michigan
Some states let cities and counties set minimum wages above the state level, which is how places like Seattle, Chicago, and New York City reached higher local floors. Michigan does not. A state preemption law, the Local Government Labor Regulatory Limitation Act, bars local governments from adopting their own minimum wage, requiring particular wage and benefit terms, or otherwise regulating the wages an employer must pay.
The practical result is that a worker in Detroit, Grand Rapids, Ann Arbor, Lansing, or anywhere else in Michigan is covered by the same statewide minimum wage. There is no separate Detroit or Ann Arbor minimum wage that overrides the state figure. This makes Michigan simpler than states with a patchwork of city ordinances, but it also means workers cannot look to a local law for a higher rate.
How to enforce your minimum wage rights
If you believe you have been paid less than Michigan's minimum wage, or that an employer took an improper tip credit and failed to make up a shortfall, you can file a wage complaint. The agency that enforces the state minimum wage is the Michigan Department of Labor and Economic Opportunity (LEO), through its Wage and Hour Division (part of the Bureau of Employment Relations). The Wage and Hour Division investigates complaints about unpaid minimum wages, overtime, and related violations.
Practical steps if you think you are underpaid:
- Keep your own records. Track the hours you work, your hourly rate, and your tips. Save pay stubs, schedules, and any text messages or emails about your pay.
- Do the math. Multiply your hours by the current minimum wage and compare it to what you were actually paid, including whether tips brought you up to the full minimum.
- Raise it internally first when safe to do so. Sometimes a payroll error is corrected once flagged. Michigan and federal law prohibit retaliation against workers who assert wage rights.
- File a complaint. If the issue is not resolved, file a wage complaint with LEO's Wage and Hour Division. You may also have rights under the federal FLSA, enforced by the U.S. Department of Labor.
- Consider legal advice. For larger or disputed claims, an employment lawyer can advise on back pay, liquidated damages, and filing deadlines.
Where to confirm the current rate
Because Michigan's minimum wage and tipped cash wage change on a set schedule and are adjusted for inflation, the single most reliable source is the State of Michigan itself. Check the Michigan Department of Labor and Economic Opportunity (LEO) Wage and Hour Division website for the official minimum wage and tipped wage figures, the required workplace poster, and any announcements of upcoming increases. For the federal comparison and FLSA coverage questions, the U.S. Department of Labor's Wage and Hour Division is the authoritative source. The numbers in this article reflect the rates in effect as of 2026; verify the current figures with LEO before making pay decisions or filing a claim.
Official Michigan Sources
This page is based on Michigan employment law. Rules and figures change — verify the current details directly with the official Michigan sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Michigan state law.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
