Michigan
Michigan’s Tipped Minimum Wage Changes, Explained
Major changes are coming for minimum wage workers in Michigan, including those in the restaurant industry who depend on tips.
After a contentious back and forth that dates back to 2018, Michigan lawmakers in February reached a compromise in the state’s tipped minimum wage saga. But the deal didn’t materialize until the Michigan Supreme Court forced Lansing officials to work together. The bipartisan agreement reached in September reduced the increases stipulated in a bill introduced six years ago, and that’s left progressives fuming.
What does this all mean for the tens of thousands of restaurant and bar workers in Michigan who are paid minimum wage? When will key policies take effect? And what’s next for advocates in Michigan and beyond? Eater Detroit has put together this handy guide to help better understand the changes and the next steps in the struggle over how much workers should be paid.
How did we get here?
In 2018, supporters launched a ballot initiative that asked voters whether to raise Michigan’s standard minimum wage from $10.10 an hour to $13.03 an hour and raise the tipped wage to $11.73 an hour starting in 2025. A second petition focused on sick leave.
The proposal never made it to ballots as conservative lawmakers amended the proposals after adopting the two measures. Years of legal battles followed until July 2024 when the state Supreme Court ruled the moves illegal. In September 2024, in clarifying the gradual elimination of the tipped minimum wage by 2030, the Michigan Supreme Court set the original proposal to become law on Friday, February 21.
Instead, Michigan’s Republican-led legislature, supported by the Michigan Restaurant & Lodging Association, and Democrats came to a compromise that slowed the wage increases. With different business models — for example, counter versus table service, or chain versus independent — restaurants will handle the measure differently.
The move left the progressive lobbying group One Fair Wage and its allies furious.
What is One Fair Wage?
Established in 2019, One Fair Wage is a nationwide grassroots effort that grew out of the worker advocacy group Restaurant Opportunities Center of New York. The phrase began gaining traction as legislation popped up in states before the pandemic with support from progressives including Vermont Sen. Bernie Sanders. One Fair Wage organized in cities across the country and has pressured local lawmakers to take action against the tipped minimum wage, arguing the practice hurt BIPOC workers while pointing toward pay discrepancies. The campaign found success in Chicago, which passed an ordinance in October 2023 to gradually eliminate the tipped minimum wage by 2028.
Lobbying groups, like the Michigan Restaurant & Lodging Association, argued that restaurant owners couldn’t afford to eliminate the tipped minimum wage and that doing so could force restaurants to close. They’ve worked with conservative lawmakers to fight One Fair Wage’s campaign.
What is the standard minimum wage?
The hourly wage in Michigan is currently $12.48 for adults and $10.61 an hour for minors.
On January 1, 2026, wages will increase by $1.25 for adults, or a 10.2 percent raise, for a standard minimum wage, which will rise to $13.73. Wages will increase again to $15 on January 1, 2027. Starting in 2027, the state will adjust those wages in October based on the rate of inflation. If the unemployment rate is more than 8.5 percent the previous year, pay adjustments due to inflation would be made on January 1 of the following year, according to the Detroit News.
What about the tipped minimum wage?
The tipped minimum wage in Michigan is currently $4.74, or 38 percent of the standard minimum. If a worker does not reach the standard minimum wage with tips during any given shift, employers are required to pay the difference or face fines of up to $2,500. However, the tipped minimum wage also allows workers to potentially earn more than the standard hourly minimum if they receive substantial tips. Progressives argue that eliminating the tipped minimum wage allows for more predictable, fair, and equitable pay, regardless of whether a restaurant is experiencing a slow night.
Under the new law, each year on February 21 until 2031, the rate will rise by 2 percent until it reaches 50 percent of the standard minimum wage.
And what about sick leave?
In addition to increases to the minimum wage, progressives have also campaigned to increase sick time. Michiganders will be able to more broadly accrue paid sick time, earning one hour of compensated leave for every 30 hours of work. Effective Wednesday, October 1, employees who work at businesses with 10 or fewer employees can accrue and use at least 40 hours of paid sick time per year. Starting immediately, workers at larger businesses will be able to accrue and use 72 hours of paid leave a year. Employees can now also carry over up to 72 hours of unused paid sick leave into the new year, with smaller firms required to allow up to 40 hours to carry over from one year to the next.
So what’s next?
Organizers from One Fair Wage called February’s decision impacting Michigan’s 400,000 tipped workers an attack on their economic security and a betrayal of the Michigan Supreme Court’s ruling.
Looking ahead, One Fair Wage is seeking to place a statewide referendum on ballots to overturn last month’s legislation by mobilizing hundreds of workers and volunteers across the state to collect signatures and bring the issue to a vote.
How do workers feel about all of this?
Workers whose livelihoods depend on tips have mixed feelings about the fight to phase out the tipped minimum wage. While some say that wage increases for Michigan servers could help them take home more money and reduce restaurant turnover, many others worry that they’ll earn less money.
It feels like I’m constantly hearing about tipping lately. Do I still need to tip?
It can feel sometimes as consumers that we’re constantly being hounded to tip at just about every point of sale, or seeing tips or service fees automatically added to higher-end restaurant bills. In some markets, service fees have been popping up to compensate for any lost tippings. Last year, the U.S. saw a widespread movement to eliminate “junk fees” partially in response to this malaise. It’s leaving customers fatigued.
But the bottom line is, yes, of course, continue to tip. The Michigan tipped minimum wage isn’t being completely eliminated. Keep in mind that tipped workers’ incomes are still contingent on customers, at least customers who value good hospitality and want to see their favorite restaurants survive while navigating a hurricane of inflation and rising labor costs.
EAST LANSING, Mich. – Black-legged ticks have been increasing across Michigan this summer, raising concerns about tick-borne illnesses like Lyme disease.
—> Michigan health officials alarmed by surge in Lyme disease cases
Researchers at Michigan State University say the large white-tailed deer population plays a key role in spreading these ticks.
To address the problem, MSU scientists are testing food capsules containing biomarkers to see if deer will eat them.
Each capsule currently includes corn, alfalfa, molasses, and a biomarker that helps track how many deer consume the capsules.
If successful, the capsules will eventually contain a vaccine to help deer build immunity to ticks, similar to how dogs are vaccinated.
The goal is to reduce the number of ticks on deer, which could lower the risk of tick-borne diseases for people spending time outdoors.
MSU professors describe this as an innovative method that could be a game-changer for controlling black-legged ticks and Lyme disease in Michigan. The capsules are being introduced in selected parks and land preserves in the Mid-Michigan area as part of the early phase of this research.
In the future, the team plans to add a drug or vaccine to the capsules to eliminate ticks on deer, aiming to stop the problem at its source.
—> 4 ways to protect yourself from ticks in Michigan, and 4 things to do after you’re outside
Copyright 2025 by WDIV ClickOnDetroit – All rights reserved.
President Donald Trump’s administration renewed its request Sunday for a federal appeals court to let him fire Lisa Cook from the Federal Reserve’s board of governors, a move the president is seeking ahead of the central bank’s vote on interest rates.
The Trump administration filed a response just ahead of a 3 p.m. Eastern deadline Sunday to the U.S. Court of Appeals for the District of Columbia, arguing that Cook’s legal arguments for why she should stay on the job were meritless. Lawyers for Cook argued in a Saturday filing that the Trump administration has not shown sufficient cause to fire her, and stressed the risks to the economy and country if the president were allowed to fire a Fed governor without proper cause.
Sunday’s filing is the latest step in an unprecedented effort by the White House to shape the historically independent Fed. Cook’s firing marks the first time in the central bank’s 112-year history that a president has tried to fire a governor.
“The public and the executive share an interest in ensuring the integrity of the Federal Reserve,” Trump’s lawyers argued in Sunday’s filing. “And that requires respecting the president’s statutory authority to remove governors ‘for cause’ when such cause arises.”
Bill Pulte, a Trump appointee to the agency that regulates mortgage giants Fannie Mae and Freddie Mac, has accused Cook of signing separate documents in which she allegedly said that both the Atlanta property and a home in Ann Arbor, Michigan, also purchased in June 2021, were both “primary residences.” Pulte submitted a criminal referral to the Justice Department, which has opened an investigation.
Trump relied on those allegations to fire Cook “for cause.”
Cook, the first Black woman to serve as a Fed governor, referred to the condominium as a “vacation home” in a loan estimate, a characterization that could undermine claims by the Trump administration that she committed mortgage fraud. Documents obtained by The Associated Press also showed that on a second form submitted by Cook to gain a security clearance, she described the property as a “second home.”
Cook sued the Trump administration to block her firing and a federal judge ruled Tuesday that the removal was illegal and reinstated her to the Fed’s board.
The administration appealed and asked for an emergency ruling just before the Fed is set to meet this week and decide whether to reduce its key interest rate. Most economists expect they will cut the rate by a quarter point.
It’s an in-state matchup on Saturday, Sept. 13, as Michigan football (1-1) takes on the Central Michigan Chippewas (1-1) for the Wolverines’ second home game of the season.
After a loss on the road at Oklahoma last week in which Michigan struggled to generate offense, the Wolverines — and particularly freshman quarterback Bryce Underwood — are looking to sharpen their offensive skills against a weaker Chippewas.
They’ll have to do so without coach Sherrone Moore, however. The coach is serving the first of a two-game suspension sanctioned by the school for his role in the Connor Stalions sign-stealing scandal. In the interim, Biff Poggi will lead the Wolverines.
Michigan’s task will be to hone its skills on both sides of the ball, but with an emphasis on offense. The Wolverines struggled to run the ball last week and Underwood had difficulty connecting with receivers downfield as well. Central Michigan provides a perfect opportunity for Michigan to build its offensive cohesiveness before beginning Big Ten play.
Follow along below for live updates.
Michigan football vs. Central Michigan early availability report
Michigan – Out: QB Davis Warren (knee), OT Andrew Babalola (knee). Probable: DB Rod Moore (knee), DB Shamari Earls (undisclosed), DB Caleb Anderson (undisclosed). Questionable: TE Marlin Klein (right foot/ankle), DB Zeke Berry (lower body), RB John Volker (undisclosed), LB Jaydon Hood (undisclosed), RB Bryson Kuzdzal (undisclosed), RB Donovan Johnson (undisclosed), edge Devon Baxter, DT Ike Iwunnah (undisclosed), WR C.J. Charleston (undisclosed). Doubtful: OL Gio-EL Hadi (left ankle/foot)
Central Michigan – Missed Week 2: TE Rory Callahan, OL John Iannuzzi.
Matchup: No. 22 Michigan (1-1) vs. Central Michigan (1-1)
Kickoff: Noon Saturday, Sept. 13; Michigan Stadium, Ann Arbor.
TV/radio: Big Ten Network; WCSX-FM (94.7).Looking for a free mini puzzle? Play the USA TODAY Quick Cross now.
Line: Wolverines by 27½.
Michigan football schedule 2025
Week 1: W, 34-17 vs New Mexico.
Week 2: L, 13-24 at Oklahoma
Week 3: vs Central Michigan, Saturday Sept. 13, noon ET (Big Ten Network).
Week 4: at Nebraska, Saturday Sept. 20, 3:30 p.m. ET (CBS).
Week 5: BYE.
Week 6: vs Wisconsin, Saturday Oct. 4, 12 p.m. or 3:30 p.m.
Week 7: at USC, Saturday Oct. 11, time TBD.
Week 8: vs Washington, Saturday Oct. 18, time TBD.
Week 9: at Michigan State, Saturday Oct. 25, time TBD.
Week 10: vs Purdue, Sautrday Nov. 1, time TBD.
Week 11: BYE.
Week 12: at Northwestern, Saturday Nov. 15, time TBD.
Week 13: at Maryland, Saturday Nov. 22, time TBD.
Week 14: vs Ohio State, Saturday Nov. 29, noon ET (Fox).
Contact Matthew Auchincloss at mauchincloss@freepress.com.
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