Current and scheduled Michigan minimum wage
| Effective date | Rate | Notes |
|---|---|---|
| January 1, 2026 | $13.73/hr | Current rate — applies to employers with 2+ employees |
| January 1, 2027 | $15.00/hr (scheduled) | Final legislated step in the PA 337 schedule |
Public Act 337 of 2018
Michigan's minimum wage schedule is established by Public Act 337 of 2018 (the Improved Workforce Opportunity Wage Act). The act set an incremental annual increase schedule. The Michigan Department of Labor and Economic Opportunity (LEO) publishes the current rate annually and confirms it on its Minimum Wage page.
Michigan's minimum wage applies to employers with 2 or more employees. The prior employer-size distinction has been simplified — the 2026 rate of $13.73/hr applies to all covered employers uniformly. Tipped workers are subject to a separate direct wage schedule published by the LEO; verify the current tipped rate at michigan.gov/leo before applying it to payroll.
Worked examples
Example 1: full-time week at 2026 rate
Example 2: part-time schedule
What this does not determine
- The specific tipped direct wage for 2026 — verify from michigan.gov/leo for current tipped rates under the incremental schedule.
- Whether a single-employee employer is exempt from the Michigan minimum wage act (though FLSA may still apply).
- Whether a specific worker category (agricultural, domestic, outside salesperson) is exempt from PA 337.
- The 2027 rate of $15.00/hr — this is legislated and expected but subject to confirmation; verify from LEO when it takes effect.
Michigan statute and enforcement
Michigan's minimum wage is codified in Public Act 337 of 2018 (MCL 408.411 et seq.). The Michigan Department of Labor and Economic Opportunity (LEO) enforces wage and hour laws. Employees who believe they have been underpaid may file a wage claim with the LEO Wage and Hour Division at michigan.gov/leo.
Michigan vs. neighboring Indiana
Michigan's 2026 minimum wage of $13.73/hr sits well above neighboring Indiana, which has remained at the federal FLSA floor of $7.25/hr since 2009 (Indiana Code § 22-2-2). Michigan's scheduled increase to $15.00 by January 1, 2027 will put nearly twice the floor of Indiana's current rate — a contrast relevant to businesses operating near the state border.
Sources and verification
The rate and effective date were verified from the Michigan Department of Labor and Economic Opportunity (LEO) Minimum Wage page. The statute reference is Public Act 337 of 2018. This page is reviewed each January when Michigan's rate adjusts. See the site's methodology for how rates are verified before publication.