Michigan Minimum Wage and ESTA

Late on February 20, 2025, the Michigan Legislature passed changes to the Earned Sick Time Act (“ESTA”) and minimum wage law. Governor Whitmer is expected to sign the amendments into law today, February 21, 2025. The original versions of these laws would have created significant challenges for employers. The revised versions of these laws still take effect on February 21, 2025 (subject to a delay for small businesses and new businesses as to paid sick leave requirements).

Key Changes

• The regular minimum wage increases from $10.56 per hour to $12.48 per hour, effective February 21, 2025. It will further increase to $13.73 on January 1, 2026, and $15 on January 1, 2027.
• The minimum wage will be adjusted for inflation beginning on January 1, 2028 and each year thereafter.
• The tipped minimum wage remains at 38% of the regular minimum wage for 2025, increasing 2% annually until reaching 50% in 2031.

For further information visit: https://www.honigman.com/alert-2872