Michigan Minimum Wage Calculator

💡 Michigan Wage Law Essentials

• Standard Minimum Rate: Under Michigan's Improved Workforce Opportunity Wage Act (IWOWA), the state baseline rate is $13.73/hour.
• Tipped Minimum Cash Wage: Under state compromise legislation preserving tip credits, direct cash wages for tipped employees are set at 40% of the baseline minimum wage ($5.49/hour), allowing a maximum tip credit of $8.24/hour.
• Tip Shortfall Make-Up: If direct cash pay ($5.49/hr) plus tips average less than the full $13.73/hr across all weekly hours worked, the employer must fund the difference.
• Voluntary Tip Pooling Only: Michigan law specifies that tip pooling/sharing must be strictly voluntary and cannot include owners, managers, or supervisors.
• Youth & Training Rates: Minors aged 16–17 may be paid 85% of the minimum wage ($11.67/hr). A subminimum training wage of $4.25/hr applies to new hires under 20 for their first 90 days.
• Overtime Pay: Hours worked beyond 40 in a workweek must be paid at 1.5× the base minimum wage. For tipped workers, the direct cash overtime rate is $(1.5 \times \text{Base Wage}) - \text{Tip Credit} = \$20.595 - \$8.24 = \$12.355 \approx \$12.36/\text{hour}$.