New year new wages

By Blake Metiva

The state of Michigan increased its hourly minimum wage on Jan. 1, 2026 for the second time in as many years. The raise coincides with the yearly increases set by the “Improved Workforce Opportunity Wage Act” which was signed into law in 2018. IWOWA increased the state’s minimum wage every year from 2025 through 2027, not without challenges. The minimum wage increased from $12.48 to $13.73. Alongside minimum wage, the 85% rate and the tipped wage rate increased as well. The 85% rate for minors ages 16 and 17 increased from $10.60 to $11.67, the tipped wage rate raised to $5.49 an hour, provided employees make at least $8.24 in tips. The training wage for newly hired employees under the age of 20 for their first 90 days remained unchanged