Business owners and hourly employees in Michigan take note: Changes are coming in 2020 to your rates of pay.
What constitutes a fair minimum wage is a pretty hot dispute right now — and there has been no increase in the federal minimum wage from the $7.25 per hour rate that was established in 2009. However, many states have recognized that the minimum wage hasn’t kept pace with inflation. A better minimum wage means more economic buying power for the average person — and that translates into good business.
While there’s a push to make the federal minimum wage $15 per hour, and some states are inching closer to that figure on their own, the minimum wage hike in Michigan won’t be that spectacular. Starting in the new year, nontipped employees can expect a minimum wage of $9.65, a twenty cent increase over 2019. Tipped employees, like bartenders and restaurant workers, will be entitled to $3.67 per hour as a minimum.
What employees can expect to receive for their labors varies tremendously throughout the nation. For example, a tipped employee in New Mexico might earn only $2.35 per hour. The same employee, doing the same work, would be entitled to a minimum of $9 per hour in nearby Arizona.
If you’re an employee, it’s important to know your wage and labor rights so that you can best protect your interests. If you’re an employer, you need to stay abreast of any changes to wage and employment laws in order to remain compliant and keep your business away from litigation and fines. If you’re uncertain what a new law means for your company, find out more from an experienced attorney.