Short answer. Michigan LEO: effective January 1, 2027, the minimum wage rate is $15.00 per hour.
$15.00
Michigan minimum wage from January 1, 2027 (+$1.27, 9.2%)
Michigan minimum wage at a glance
- 2027 rate
- $15.00 from January 1, 2027
- 2026 rate
- $13.73 from January 1, 2026 (Michigan LEO).
- Change
- +$1.27 an hour (9.2%)
- Tipped employees
- Cash wage $5.49 → $6.30; maximum tip credit $8.70
- Local rates
- Not confirmed on a state page
- Coverage note
- Michigan's law applies to employers with 2 or more employees (LEO).
Michigan tipped employees in 2027
Tipped cash wage is 40% of the minimum in 2026 ($5.49) and 42% from January 1, 2027 ($6.30), per LEO's FAQ. A server on $6.30 who works 30 hours needs at least $261.00 in tips that week to reach $15.00 an hour; the employer covers any shortfall.
Other Michigan rates
| Who | 2026 | 2027 | Where it's from |
|---|---|---|---|
| Workers under 18 (85% of the minimum) | $11.67 | $12.75 | LEO lists $11.67 for 2026; 85% of $15.00 is $12.75. |
| New hires under 20, first 90 days (training wage) | $4.25 | $4.25 | LEO FAQ. |
What the Michigan change costs: an example
Each row compares a pay rate with the Michigan 2027 floor. Weekly cost is the raise times hours, with overtime at time and a half; the last column runs from January 1, 2027 to December 31, 2027 (52.14 weeks). Employer taxes aren't included.
| Employee | Rate now | Hours | Raise | Weekly | Rest of 2027 |
|---|---|---|---|---|---|
| At the 2026 minimum | $13.73 | 40 | +$1.27 | $50.80 | $2,648.71 |
| Between the two rates | $14.37 | 30 | +$0.63 | $18.90 | $985.45 |
| Full time plus 5 hours overtime | $13.73 | 45 | +$1.27 | $60.33 | $3,145.61 |
| Already above 2027 | $15.50 | 40 | None | $0.00 | $0.00 |
| Tipped, at the 2026 cash wage | $5.49 | 30 | +$0.81 | $24.30 | $1,267.00 |
Run your own staff list in the payroll change calculator set to Michigan.
Updating Michigan payroll
- Before January 1, 2027, list everyone paid under $15.00 an hour (or under $6.30 cash for tipped staff), including part-timers and seasonal staff.
- Decide which Michigan rate applies to each person: workers under 18 (85% of the minimum); new hires under 20, first 90 days (training wage).
- Change the rates in payroll with an effective date of January 1, 2027, and split any pay period that crosses it.
- For tipped staff, update the cash wage and keep checking each week that cash wage plus tips reaches $15.00.
- Replace the Michigan minimum wage poster with the 2027 version from the state labor department.
Official Michigan sources
- Michigan LEO: Minimum Wage & Overtime
- Michigan LEO: Minimum Wage and Overtime FAQ
- U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026)
- U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026)
General information, not legal advice, checked November 2026 against the official Michigan pages above. A state can change a rate after we check, cities and counties can set higher rates, and exemptions depend on the job and the employer. Before you change payroll, confirm the rate on the state labor department's site or with your payroll provider or employment attorney. MCC Solutions isn't affiliated with any government agency.
Michigan 2027 minimum wage questions
What is the Michigan minimum wage in 2027?
$15.00 an hour from January 1, 2027, up from $13.73. Michigan LEO: effective January 1, 2027, the minimum wage rate is $15.00 per hour.
What is the tipped minimum wage in Michigan for 2027?
$6.30 an hour in cash wages ($5.49 before the change), with tips making up the rest of $15.00. Tipped cash wage is 40% of the minimum in 2026 ($5.49) and 42% from January 1, 2027 ($6.30), per LEO's FAQ.
Is there a different Michigan rate for workers under 18 (85% of the minimum)?
Yes: $12.75 in 2027 ($11.67 in 2026). Source: LEO lists $11.67 for 2026; 85% of $15.00 is $12.75. It applies only to workers who fit that description; everyone else gets $15.00.
Is there a different Michigan rate for new hires under 20, first 90 days (training wage)?
Yes: $4.25 in 2027 ($4.25 in 2026). Source: LEO FAQ. It applies only to workers who fit that description; everyone else gets $15.00.
Does the Michigan minimum wage cover every employer?
Michigan's law applies to employers with 2 or more employees (LEO). The state's labor department decides coverage questions.
How much more does a full-time Michigan minimum wage worker cost each week in 2027?
$1.27 an hour more, so $50.80 for a 40-hour week before employer taxes, or about $2,648.71 over the rest of 2027. Overtime hours add the raise at time and a half.
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