[Michlib-l] FW: RELEASE: Minimum wage increase unlikely to take effect on Jan. 1

[Membiela, Clare (MDE)]

Greetings!

Below is some information regarding Minimum wage increases for 2021.
Take Care!

Sincerely,
Clare

Clare D. Membiela, MLS, J.D.
Library Law Consultant
Library of Michigan
MembielaC at michigan.gov<mailto:MembielaC at michigan.gov>
517-335-8132

The research and resources above are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem.
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From: Michigan Department of Labor and Economic Opportunity <LEO at govsubscriptions.michigan.gov>
Sent: Friday, December 11, 2020 3:02 PM
To: Membiela, Clare (MDE) <MembielaC at michigan.gov>
Subject: RELEASE: Minimum wage increase unlikely to take effect on Jan. 1


[LEO Banner]
--- PRESS RELEASE ---

FOR IMMEDIATE RELEASE:
Friday, Dec. 11, 2020

CONTACT: Camara Lewis<mailto:lewisc16 at michigan.gov>
<mailto:olsend1 at michigan.gov>517-930-4928

Minimum wage increase unlikely to take effect on Jan. 1

LANSING, Mich. - The Michigan Bureau of Employment Relations, Wage and Hour Division today announced the state's scheduled minimum wage increase is not expected to go into effect on Jan. 1, 2021.

Michigan's Improved Workforce Opportunity Wage Act<https://gcc01.safelinks.protection.outlook.com/?url=https%3A%2F%2Flnks.gd%2Fl%2FeyJhbGciOiJIUzI1NiJ9.eyJidWxsZXRpbl9saW5rX2lkIjoxMDAsInVyaSI6ImJwMjpjbGljayIsImJ1bGxldGluX2lkIjoiMjAyMDEyMTEuMzE5MzQwOTEiLCJ1cmwiOiJodHRwOi8vd3d3LmxlZ2lzbGF0dXJlLm1pLmdvdi8oUygydDRhZXpmcnJ0dmZtYzBnc2xtZ3Qwb2QpKS9taWxlZy5hc3B4P29iamVjdG5hbWU9bWNsLUFjdC0zMzctb2YtMjAxOCZwYWdlPUdldE9iamVjdCZ1dG1fbWVkaXVtPWVtYWlsJnV0bV9zb3VyY2U9Z292ZGVsaXZlcnkifQ.s2XCX9BGJeBwtxRFT82MRpJKdxmWfLgNDDKxUDGBA_Y%2Fs%2F1366448368%2Fbr%2F91593460749-l&data=04%7C01%7Cmembielac%40michigan.gov%7Cf95d7ebf955244557d6908d89e0fa79d%7Cd5fb7087377742ad966a892ef47225d1%7C0%7C0%7C637433137360572169%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=0kwD7ifg34Bi42G4Mw3ZSa%2Fi6y4hJc41RCTVNUb%2FUgM%3D&reserved=0> of 2018 prohibits scheduled minimum wage increases when the state's annual unemployment rate for the preceding calendar year is above 8.5%.

The state's 2020 annual unemployment rate, which is determined by the Bureau of Labor Statistics (BLS), U.S. Dept. of Labor, is calculated by using both average labor force and unemployment levels for January through December.

While Michigan's October unemployment rate continued its downward trend and is 5.5%, the annual average from January through October currently sits at 10.2% and is highly unlikely to dip below the 8.5% threshold when BLS releases the final 2020 unemployment numbers for Michigan.

If, as expected, the annual unemployment rate does not fall below 8.5%, then effective Jan. 1, 2021:

  *   Michigan's minimum wage will remain at $9.65 an hour.
  *   The 85% rate for minors age 16 and 17 remains $8.20 an hour.
  *   Tipped employees rates of pay remains $3.67 an hour.
  *   The training wage of $4.25 an hour for newly hired employees age 16 and 17 for their first 90 days of employment remains unchanged.

Per statute, future increases to the minimum wage rate will occur in each calendar year following a calendar year for which the unemployment rate for this state, as determined by the BLS, is less than 8.5%. See MCL 408.934(1) and (2).

Michigan's minimum wage rate will next increase to $9.87 in the first calendar year following a calendar year for which the annual unemployment rate is less than 8.5%. See MCL 408.934(1)(h).

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