Michigan Statewide Rule

Michigan Minimum Wage. Local Preemption

Some RestrictionsApplies statewide across Michigan (2026)

Key Facts

Local preemption: PA 105 of 2015 (MCL 123.1383)
Minimum wage: $13.73/hr from Jan 1, 2026
Tipped minimum: $5.49/hr in 2026, phasing up
Next step: $15.00 on Jan 1, 2027
Local wage floors: Locals cannot set higher wage
Mothering Justice (2024): Restored 2018 ballot initiatives

Last verified: August 21, 2026Source: MI Improved Workforce Opportunity Wage Act (PA 337 of 2018) + 2024 Mothering Justice Ruling

Summary

Michigan minimum wage is set by the Improved Workforce Opportunity Wage Act (PA 337 of 2018). The Local Labor Regulatory Limitation Act (PA 105 of 2015, MCL §123.1381+) preempts local wage and scheduling ordinances. After the 2024 Mothering Justice ruling and 2025 legislation, scheduled step-ups reach $15.00 by 2027.

A local governmental body shall not adopt, enforce, or administer an ordinance, local policy, or local resolution requiring an employer to pay to an employee a wage higher than the state minimum hourly wage rate determined under section 4 of the workforce opportunity wage act, 2014 PA 138, MCL 408.414, or, if applicable to the employer, the minimum wage provisions of the fair labor standards act of 1938, 29 USC 201 to 219, unless those federal minimum wage provisions would result in a lower minimum hourly wage than provided under state law.

Source: MI Improved Workforce Opportunity Wage Act (PA 337 of 2018) + 2024 Mothering Justice RulingView official code

Full Breakdown

PA 105 of 2015 (MCL §123.1381–123.1396) preempts local governments from regulating private-sector wages, fringe benefits, leave, work schedules, prevailing wages on private projects, or employee ID requirements. State minimum wage is governed by the Improved Workforce Opportunity Wage Act; the rate rose to $13.73/hr ($5.49 tipped) on January 1, 2026, and is scheduled to reach $15.00 on January 1, 2027. In July 2024, the Michigan Supreme Court decided Mothering Justice v. Attorney General, holding the 2018 Legislature unconstitutionally adopted-and-amended two ballot initiatives; the Legislature then revised the wage schedule in early 2025. LEO Wage and Hour enforces.

Violations & Penalties

Local ordinances regulating wages or scheduling are void under MCL §123.1383. Employer underpayment of state minimum wage is recoverable by employees through Wage and Hour complaints (LEO) with double damages and attorney fees for willful violations under PA 337.

Frequently Asked Questions

Can Detroit or Ann Arbor set a higher local minimum wage?

No. PA 105 of 2015 preempts local wage ordinances. Any city or township ordinance setting a higher private-sector minimum wage is unenforceable.

What is the Michigan minimum wage right now?

As of January 1, 2026, $13.73/hour standard and $5.49/hour for tipped workers. The rate is scheduled to rise to $15.00 on January 1, 2027, with the tipped percentage phasing up.

What was the Mothering Justice ruling?

A July 2024 Michigan Supreme Court decision holding that the Legislature could not constitutionally adopt-and-amend the 2018 wage and paid-leave ballot initiatives, restoring the original initiatives schedule.

Sources

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