Treasury Department Updates Wage Rates for 2025 and Beyond

The Michigan Supreme Court clarified how the state should move forward with the minimum wage increase plan, clearing the way for a $14.97 minimum wage by 2028.

Michigan’s Minimum Wage will increase twice in 2025 – first increasing on Jan. 1, 2025, following the usual rate increase schedule, and again on Feb. 21, 2025, in accordance with the recent Michigan Supreme Court ruling regarding the Improved Workforce Opportunity Wage Act (IWOWA), PA 337 of 2018, schedule. 

The training wage of $4.25 per hour for newly hired employees under the age of 20 for their first 90 calendar days of employment remains unchanged. 

Every October beginning in 2028, the state treasurer will calculate an adjusted minimum wage rate, increasing the minimum wage by the rate of inflation. The adjusted minimum wage rate is published by Nov. 1 of the year it is calculated and comes effective beginning Feb. 21 of the succeeding year.    

The Detroit Regional Chamber is working proactively to give its members the most updated information and resources, while fighting in Lansing to soften the impact of this adverse ruling.

However, it takes the entire business community to help alleviate the current ruling’s complexities. Business leaders should connect with their Michigan House and Senate representatives to voice their personal concerns and ask for the following amendments before the February 2025 mandate begins:

• Exempt plans that meet or exceed the mandated 72 hours.
• Exempt small businesses and certain workers (including part-time and seasonal employees).
• Require time to be used in full- and half-day increments and allow employers to require advanced notice.
• Eliminate private right of action and rebuttable presumption.
• Allow employers to frontload 72 hours at the start of the year.

Chamber members have the added benefit of receiving advice and help on reaching out to legislative leaders personally from the Chamber’s Public Policy and Business Advocacy team.

The Chamber will continue to update and provide resources for members on this critical issue.