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Michigan’s Tipped Minimum Wage Changes, Explained

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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.

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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.

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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.

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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.

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Lake effect showers continue across part of Michigan today, then we’ll see a switch

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Lake effect showers continue across part of Michigan today, then we’ll see a switch


We can expect some scattered showers this morning as the last of the soggy weather moves across Michigan. But then a high-pressure system will be moving in.

This will bring dry weather and a chance for daytime temperatures to warm up a little bit for the weekend.

Some areas of the state could brush 60 degrees by Sunday.

Here are the forecast highlights from the National Weather Service offices across Michigan:

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Rain showers will persist across eastern and northern Michigan through Friday afternoon, with some wet snowflakes possibly mixing in over the high terrain of the Upper Peninsula.

Temperatures will remain cool statewide with highs in the 40s to low 50s.

The most persistent shower activity will be in the eastern Upper Peninsula and northeastern Lower Peninsula, particularly in western Alger County where up to 0.40 inches of rainfall is expected.

Northwest winds of 15-25 mph will gradually diminish through the day as high pressure builds across the region.

Frost and freeze conditions are likely Friday night, especially away from the lakeshores, with temperatures falling into the upper 20s to mid-30s across most of Michigan. The growing season has already been declared over for all Michigan counties, so no additional freeze warnings are anticipated.

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The weekend will bring improving conditions statewide as high pressure settles overhead. Saturday will feature diminishing clouds and temperatures in the low to mid-50s. Sunday looks even milder with highs reaching the mid to upper 50s across most of Michigan, with some areas approaching 60 degrees.

The extended forecast shows continued mild temperatures into early next week, with highs near 60 degrees on Monday. Dry weather will prevail through Monday before precipitation chances gradually increase by midweek as a complex weather pattern develops.

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Fox’s Joel Klatt picks winner of Michigan vs. MSU, best bet for the game

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Fox’s Joel Klatt picks winner of Michigan vs. MSU, best bet for the game


Michigan will enter East Lansing as a sizable favorite over rival Michigan State this weekend. The Wolverines have defeated MSU in the past three contests and Michigan is expected to do the same this weekend. Now, with rivalry games, anything can happen, but there is a clear talent discrepancy.

Michigan knows it has to win out if the Wolverines hope to make the College Football Playoff and MSU has really struggled, losing its last four games.

While Michigan is expected to win the game, who covers the spread? The Wolverines are now a 14.5 point favorite, and Fox analyst Joel Klatt helped break down the game and gave his opinion on the line.

Klatt believes Michigan is going to win this game, but again, it’s a rivalry game, and the Spartans should throw everything at the Wolverines. Jonathan Smith could go deep in the playbook to pull out some trickery. While Klatt sees Michigan winning the game, he thinks Michigan State will cover.

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“The only thing for me on the Michigan State side is that this is a kitchen sink type of game. You throw the kitchen sink at Michigan, you’re at home. It’s a rivalry game,” said Klatt.

“And let’s face it, Michigan has not run away from anybody this year. So the 14.5 looks like a big number. The score that I land on is Michigan 30 -17, which means a 13-point win, which means I’m going to take the home points for Michigan State.”

Klatt talked about how Michigan unlocked the ‘Rubik’s Cube’ last weekend against Washington. It was a vintage Michigan win. The Wolverines blocked well, ran the ball hard, and QB Bryce Underwood played as efficiently as he had all season. Andrew Marsh has emerged as a top target for Underwood and the Wolverines’ defense was fantastic.

Michigan State doesn’t do anything well on the defensive end. Run defense is poor and Jordan Marshall could be in store for a big game. While Klatt is correct that MSU could pull out all the stops, Michigan is still the better team.

14.5 points is a lot on the road against a rival, but if the Wolverines play their game, against a struggling MSU defense, Michigan should be able to get it done.

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Odds refresh periodically and are subject to change.
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Michigan small businesses benefit from overseas trade missions

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Michigan small businesses benefit from overseas trade missions


The backbone of Michigan’s economy has and continues to be manufacturing, which is why two times a year the state sends 10 small businesses overseas only to return with new customers.

Big picture view:

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It’s all thanks to Troy’s Automation Alley and it has worked to the tune of $2.3 billion in new business.

This story starts in the middle with, well, the middle man.

“We want to see our children stay here like everybody,” said Tom Kelly, the CEO of Automation Alley. “And we have to create vibrant communities. One of the backbones of Michigan is manufacturing.”

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Kelly leads the team at Automation Alley in Troy. Think of them as the bridge that brings Michigan manufacturers directly to the customers.

“There are 12,000 manufacturers in Michigan, we have 4,000 as members,” he said.

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He says they have a formula that is proven – and works.

“We take them to these foreign countries, we set up appointments with companies that want to buy their products, and we help them close the deals,” he said. “Since we started, we have generated over $2.3 billion dollars for small manufacturers.”

The two trips coming up with take ten of these small businesses to Querétaro, Mexico in February and Paris, France in June of next year.

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“By the way, here’s the kicker, it’s actually subsidized by the State of Michigan,” Kelly said. “So we can cover up to half of your travel expenses on these trade missions because guess what? It’s a huge win for the State of Michigan if you become a net exporter of your product to other countries.”

For those who may be thinking this is only a free trip – think again. Automation Alley has been putting on these trade missions for years.

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“We have the relationships, we know who they should be meeting with, and people are people all over the world,” Kelly said.

Those relationships usually lead to lasting relationships, he added.

Automation Alley is an non-profit funded through donor businesses who know the value of Michigan manufacturing.

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While the trade missions are important, it’s not all the only thing that happens here.

“Trade missions are only twice a year,” Kelly said. “We have programming all year long that helps you understand Artificial Intelligence,  help you make a choice  on what robot should I buy. What kind of systems do I need to consider, what are my peers doing in manufacturing that I can emulate and be successful like them.

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“All of these things are available free of charge to all 12,000 manufactures in the State of Michigan.”

If you’d like to find out how to sign up your business to take advantage of the trade missions or other programs, just visit automationalley.com

The Source: Information for this report is from an interview with Tom Kelly, the CEO of Automation Alley.

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