Effective January 1, 2017, employees in the state of Michigan will discover that the minimum wage has increased from $8.50 to $8.90. This increase marks the third step of a gradual 25% increase in the minimum hourly wage rage that will ultimately conclude with a minimum wage of $9.25 in 2018. This regulation is enforced by the Wage and Hour Division, which is an agency within the Bureau of Employment Relations.
Employers are permitted to take a tip credit on minimum wage under certain conditions for employees that customarily and regularly receive tips. There are several conditions that apply when taking a tip credit on Michigan’s minimum wage:
- The employee must be in a position which customarily and regularly receives tips from patrons or guests for services rendered.
- If tips plus the minimum hourly wage rate do not equal or exceed the minimum hourly wage, the employer pays any shortfall to the employee.
- The tips are proven tips as indicated by the employer’s declaration for Federal Insurance Contribution Act.
- The employee was informed by the employer of the provisions of Act 138.
- If a credit for tips received by an employee, then the employment records for each pay period must contain the credit that was taken in addition to a written statement of the amount of gratuities received by the employee. The statement must be signed by the employee and dated before the date on which the paycheck was received.
Exceptions for Workers
There are certain groups of workers that are not covered by minimum wage requirements. These workers are sometimes referred to as “exempt workers.” These workers include the following groups of employees:
- Babysitters who works on a casual basis.
- Companions for the elderly.
- Computer analysts and programmers.
- Employees in fish and aquatic farming.
- Employers of limited circulation newspapers.
- Farmworkers on small farms.
- Newspaper delivery workers.
- Outside sales employees.
- Salaried executives, professional, and administrative employees.
- Seamen on non-American vessels.
- Seasonal amusement or recreation employees.
- Telephone company switchboards operators.
If an employer receives a certificate from the local Wage and Hour Division of the United States Division of Labor, an individual can receive a wage that is less than the minimum wage as a disabled worker whose disability affects productivity or even wage-earning eligibility.
Age Based Exceptions
Act 138 allows an employer to pay a newly hired employer between the ages of 16 to 19 are allowed to be paid an hourly rate of $4.25 for the first ninety days of employment. Employers in Michigan are also allowed to pay 85% of the minimum hourly wage rate to employees aged 16 and 17.
The Assistance of a Licensed Attorney
If you or a loved one is experiencing any type of difficulty in relationship to minimum wage in the state of Michigan, you likely need to retain the services of a skilled attorney like the legal counsel at Jay Trucks and Associates, PC. Our firm knows what it takes and is willing to fight tirelessly to make sure that your case reaches most positive resolution possible.
Free Consultation. Ph: (800) 762-8623.