Michigan’s minimum wage to jump 20% under court ruling

LANSING, Mich. (AP) — Michigan’s current minimum wage will rise 20% by the end of February to $12.48 per hour, officials said Tuesday, the result of a major state Supreme Court decision.

The $10.33 minimum wage will increase to $10.56 on Jan. 1 and then $12.48 on Feb. 21, according to the state Department of Labor and Economic Opportunity. The figure will rise each year and reach $14.97 by February 2028, followed by annual inflation adjustments determined by the state treasurer.

The state released the wage schedule following a summer ruling by the Michigan Supreme Court. The court ruled 4-3 in favor of reinstating major changes to the minimum wage and sick leave law sought by advocates for low-wage workers.

More than 280,000 people signed petitions in favor of the improvements. But instead of putting the issue on the 2018 statewide ballot, the Republican-controlled Legislature approved the changes, then watered them down before a new governor and new members of the Legislature took office. The Supreme Court said the actions were illegal.

In February, the minimum wage for workers who regularly get tips will be 48% of the standard minimum wage, the labor department said. By 2030, the two categories will reach even levels.

Some restaurant and bar workers fear the public won’t tip them if they know they’re getting a higher base wage. Instead, certain industry workers favor the current Democratic-controlled Legislature changing the law.