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A Bodman Workplace Law Group Alert: Michigan Employers Must Pay Workers Under Age 18 the New Federal Minimum Wage Starting July 24

7/23/2009

Under Michigan’s Minimum Wage law, most employers are required to pay whichever minimum wage rate is higher: state or federal. Michigan’s minimum wage has been higher than federal minimum wage since October 2006. Michigan’s minimum wage is currently $7.40 per hour. On Thursday, July 24, 2009, federal minimum wage will increase to $7.25 per hour. Thus, employers must continue to pay most Michigan employees at $7.40 per hour.

Michigan law permits employers to pay workers under age 18 a reduced minimum wage equal to 85% of the state minimum wage. Eighty-five percent of $7.40 per hour is $6.29 per hour. Because the federal minimum wage rate is higher than 85% of the Michigan rate, beginning on July 24, 2009, Michigan employers will be required to pay workers under age 18 at the new federal minimum wage of $7.25 per hour.

Both Michigan and federal law permit employers to pay a newly hired employee who is less than 20 years old a training wage of $4.25 per hour during the first 90 days of employment. This training wage will still be available for new employees under age 20.

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