Michigan Workforce Opportunity Wage Act Minimum Wage & Overtime Poster Required

Michigan Department of Labor and Economic Opportunity

GRETCHEN WHITMER
GOVERNOR

Wage and Hour Division
PO Box 30476
Lansing, MI 48909-7976
REQUIRED POSTER
GENERAL REQUIREMENTS - MINIMUM WAGE and OVERTIME

SUSAN CORBIN
DIRECTOR

Coverage
The Improved Workforce Opportunity Wage Act (IWOWA), Public Act 337 of 2018 covers employers who employ 2
or more employees 16 years of age and older.
Minimum Hourly Wage Rate
Tipped Employee

Effective Date

Minimum Hourly Wage
Rate

Minimum Hourly Rate

Reported Average Hourly Tips

February 21, 2025

$12.48

$5.99

$6.49

$10.61

February 21, 2026

$13.29

$7.97

$5.32

$11.30

February 21, 2027

$14.16

$9.91

$4.25

$12.04

February 21, 2028

$14.97

$11.98

$2.99

$12.72

85%** Rate

The minimum hourly wage rate of an employee eligible to be considered tipped employee shall be 48% of the minimum hourly wage rate effective February 21, 2025;
beginning February 21, 2026, it shall be 60% of the minimum hourly wage rate; beginning February 21,2027, it shall be 70% of the minimum hourly wage rate; beginning
February 21, 2028, it shall be 80% of the minimum hourly wage rate; beginning February 21, 2029, it shall be 90% of the minimum hourly wage rate; and beginning
February 21, 2030 and thereafter, it shall be 100% of the minimum hourly wage rate.

85% Rate

Minors under the age of 18 may be paid 85% of the minimum hourly wage rate.

Training Wage

A training wage of $4.25 per hour may be paid to employees under 20 years of age for the first 90 calendar days of
employment.

Overtime

Employees covered by the IWOWA must be paid 1-1/2 times their regular rate of pay for hours worked over 40 in a workweek.
The following are exempt from overtime requirements: employees exempt from the minimum wage provisions of the Fair
Labor Standards Act of 1938, 29 USC 201 to 219 (except certain domestic service employees), professional, administrative,
or executive employees; elected officials and political appointees; employees of amusement and recreational establishments
operating less than 7 months of the year; agricultural employees, and any employee not subject to the minimum wage
provisions of the act. Public sector and certain private sector employers not covered by the FLSA may be able to use
compensatory time in lieu of overtime under specific provision.

Equal Pay

An employer shall not discriminate on the basis of sex by paying employees a rate which is less than the rate paid to
employees of the opposite sex for equal work on jobs requiring equal skill, effort, and responsibility performed under similar
working conditions - except where payment is pursuant to a seniority system, merit system or system measuring earnings on
the basis of quantity or quality of production or a differential other than sex.

Enforcement

An employee may either file civil action for recovery of unpaid minimum wages or overtime, or they may file a complaint with
the Department of Labor and Economic Opportunity. The department may investigate a complaint and file civil action to
collect unpaid wages or overtime due the employee and all employees of an establishment. Recovery under this act can
include unpaid minimum wages and/or overtime, plus an equal additional amount as liquidated damages, costs, and
reasonable attorney fees. A civil fine of $1,000 can be assessed to an employer who does not pay minimum wage and/or
overtime.

LEO is an equal opportunity employer/program.
Auxiliary aids, services and other reasonable accommodations are available, upon request, to individuals with disabilities.
www.michigan.gov/wagehour • Toll Free 1-855-4MI-WAGE (1-855-464-9243)
WHD 9904 (Revised • 9/2024)