In January, the Michigan Department of Labor & Economic Opportunity implemented revisions to two compulsory labor law postings: the Michigan minimum wage poster and the Earned Sick Time poster. Effective February 21st, 2025, the Michigan minimum wage will increase from $10.56 to $12.48 per hour. Additionally, the department has replaced the previously required Paid Medical Leave Act poster with a reissued Earned Sick Time Act notice. Michigan employers must post the updated notices where employees can access them during the workday.
Why Is the Michigan Minimum Wage Increasing on February 21st, 2025?
Many employers may be confused as to why the state minimum wage is increasing again less than two months after the current rate of $10.56 per hour took effect on January 1st of this year. A July 2024 Michigan Supreme Court decision overturned legislative amendments to both the Improved Workforce Opportunity Wage Act and the Paid Medical Leave Act. This decision resulted in the restoration of previously adopted ballot initiatives from 2018 that included a multi-year minimum wage increase. The first scheduled increase of the six-year wage increase plan takes effect on February 21st, 2025, when the state-required minimum wage for non-tipped workers increases to $12.48 per hour.
Additional minimum wage increases will take effect on February 21st of each year through 2030. By the 2028 increase, the minimum wage will reach $14.97 per hour. In 2029 and 2030, the Department of Labor & Economic Opportunity will adjust the rate annually based on inflation.
What Is the Tipped Minimum Wage Increasing to on February 21st?
Michigan law allows employers to pay the tipped minimum wage to service workers who customarily or regularly receive tips. If the employee’s tips, when combined with the tipped minimum wage rate, fail to equal the non-tipped hourly rate, the employer must pay the difference. Applying earned tips to employee wages is known as a "tip credit."
On February 21st, 2025, the tipped minimum wage will increase to $5.99 per hour, equivalent to 48% of the minimum hourly rate for non-tipped workers. Each year through 2030, the tipped minimum wage will increase to a higher percentage of the non-tipped rate. By the 2030 increase, the tipped wage will equal the standard minimum wage, eliminating Michigan's tip credit.
Why Has the Revised Earned Sick Time Poster Replaced the Paid Medical Leave Act Poster?
The previously mentioned July 2024 Michigan Supreme Court decision overturned amendments that created the Paid Medical Leave Act, restoring the 2018 Earned Sick Time Act. As such, the Michigan Department of Labor has rescinded the Paid Medical Leave Act poster requirement and replaced it with a revised poster informing workers of their rights under the Earned Sick Time Act restored by the Supreme Court.
Under the Earned Sick Time Act, beginning February 21st, 2025, employees will accrue one hour of paid sick time for every 30 hours worked. The law permits employees to use up to 40 hours of paid sick time per year if they work for a business with less than 10 employees. Businesses with 10 or more employees must allow workers to take up to 72 hours of paid sick time per year, including any carryover from the previous year.
Employer Takeaways
Michigan employers must post the revised Michigan minimum wage poster on or before the effective date of February 21st. Meanwhile, employers covered by the Earned Sick Time Act must remove the prior Paid Family Leave Act poster and replace it with the Earned Sick Time poster re-issued by the Michigan Department of Labor & Economic Opportunity. For assistance with these requirements, employers can rely on a trusted Michigan Compliance Service to ensure all postings are accurate and up to date.
Labor Law Posters Online's revised 2025 Michigan State & Federal Labor Law Poster now includes both newly revised notices. Our all-on-one compliance poster solution is guaranteed to include all recent updates to any required state and federal posters. Customers of Labor Law Posters Online who have subscribed to our annual automatic poster update service will automatically receive the updated notices at no extra charge, helping them remain compliant with current Michigan labor law posters requirements.
