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- Michigan’s minimum wage increased to $9.65 in 2020
- The tipped rate was $3.67, not the complete wage obligation
- Workers ages 16 and 17 could receive $8.20
- The training wage was limited to the first 90 days
- Why the rate did not rise in 2021
- Coverage and hours worked still mattered
- Historical records should use the rate for the work date
- The current Michigan rate is much higher
- Common questions about Michigan minimum wage in 2020
- Was Michigan’s 2020 minimum wage $9.65?
- What was the tipped minimum wage in 2020?
- Did the minimum wage increase in 2021?
- Is $9.65 still Michigan’s minimum wage?
- Sources
Key Facts
- Michigan state level—2020: Michigan’s general minimum hourly wage was $9.65 beginning January 1, 2020.
- Michigan state level—2020: The minimum direct wage for an eligible tipped employee was $3.67 per hour, provided wages plus tips reached the full minimum.
- Michigan state level—2020: Employees ages 16 and 17 could generally be paid 85% of the adult rate, or $8.20 per hour.
- Michigan state level—2020: A newly hired employee under age 20 could receive a $4.25 training wage during the first 90 calendar days.
- Michigan state level—2021: The general rate remained $9.65 because the statutory unemployment condition prevented the scheduled adjustment.
- Michigan state level—current context: The 2020 amounts are historical; Michigan’s general minimum wage is $13.73 beginning January 1, 2026.
Michigan’s 2020 minimum wage is a historical rate, not a description of current pay law. For work performed from January 1 through December 31, 2020, the state’s ordinary minimum was $9.65 per hour for covered adult employees.
The date of the work matters. A payroll record from 2020 is tested against the law then in effect, while work performed now uses the current rate and current coverage rules.
Michigan’s minimum wage increased to $9.65 in 2020
Michigan’s Improved Workforce Opportunity Wage Act scheduled the general rate to rise from $9.45 in 2019 to $9.65 on January 1, 2020. The rate applied to covered employees working for employers within the state act’s coverage.
Michigan’s law generally covered employees age 16 and older working for an employer with at least two employees. When both Michigan and federal wage law applied, the more protective applicable standard controlled.
This historical spoke complements the broader Michigan minimum wage timeline, which addresses the following year’s rate.
The tipped rate was $3.67, not the complete wage obligation
In 2020, an eligible tipped employee could receive a direct hourly wage of $3.67. That amount represented 38% of the $9.65 general rate under the Michigan formula then in force.
The employer had to inform the employee of the tip provisions and keep the required tip records. If direct wages plus reported tips did not equal at least $9.65 for the covered period, the employer had to pay the shortfall.
A $3.67 cash wage therefore did not mean the employee’s legal minimum was only $3.67. It described the employer-paid component allowed when every condition for using tips toward the full state minimum was satisfied.
Workers ages 16 and 17 could receive $8.20
Michigan allowed employees ages 16 and 17 to be paid 85% of the general minimum wage. Applied to the 2020 rate, that produced an hourly minimum of $8.20 after rounding to the amount published for the year.
This youth rate was distinct from the training wage. Age alone did not authorize the $4.25 training rate for an unlimited period.
The training wage was limited to the first 90 days
A newly hired employee under age 20 could be paid $4.25 per hour during the first 90 calendar days of employment. After that introductory period, the otherwise applicable Michigan rate applied.
The training rate was tied to both age and duration. It was not a general rate for all young workers, and it did not replace more protective requirements that applied to a particular employment relationship.
Why the rate did not rise in 2021
Michigan’s rate was scheduled to increase with inflation, but the statute included an unemployment condition. The 2021 increase did not take effect because the state’s annual average unemployment rate for the relevant period exceeded the statutory threshold.
As a result, the general rate remained $9.65 in 2021, the tipped direct rate remained $3.67, and the 85% youth rate remained $8.20. That pause explains why 2020 and 2021 payroll materials can show identical amounts even though they concern different calendar years.
Coverage and hours worked still mattered
The stated hourly rate was only one part of compliance. A covered employee had to be paid for all compensable hours, and nonexempt overtime generally required one and one-half times the regular rate after 40 hours in a workweek.
Salary, commission, and piece-rate arrangements did not automatically avoid the minimum. The compensation credited under the act still had to satisfy the applicable floor for covered hours unless an exemption applied.
Job titles also did not decide exemption status. The governing statutory and regulatory requirements, including actual duties where relevant, controlled.
Historical records should use the rate for the work date
A pay stub issued in January 2021 can include hours worked in December 2020. The work date and pay period therefore matter more than the check’s printing date when identifying the historical minimum.
Records can also distinguish several different issues: an hourly rate below the floor, unpaid working time, an invalid tip credit, or overtime calculated from the wrong regular rate. Those theories may lead to the same small paycheck but require different factual comparisons.
The current Michigan rate is much higher
The $9.65 figure should not be used for current payroll. Michigan’s general minimum wage increased to $13.73 on January 1, 2026, and the current tipped and 85% rates also differ from their 2020 amounts.
Current Michigan guidance lists a $5.49 tipped direct rate and an $11.67 85% rate for 2026. It also schedules a $15.00 general rate for January 1, 2027.
These current figures provide context only. They do not retroactively change the rate that governed work performed in 2020.
Common questions about Michigan minimum wage in 2020
Was Michigan’s 2020 minimum wage $9.65?
Yes. The general state rate was $9.65 per hour beginning January 1, 2020 for covered employees.
What was the tipped minimum wage in 2020?
The permitted direct rate was $3.67 per hour when the employer satisfied Michigan’s tip-credit conditions and wages plus tips reached $9.65.
Did the minimum wage increase in 2021?
No. The scheduled adjustment was blocked by the statute’s unemployment condition, so the general rate remained $9.65.
Is $9.65 still Michigan’s minimum wage?
No. The general rate is $13.73 beginning January 1, 2026.
