Action Required! Michigan Minimum Wage Law

Immediate action may be required by your company.  Michigan’s minimum wage will increase to $8.50 per hour effective January 1, 2016.  This means that employers who pay minimum wages must act quickly to ensure their payroll practices are updated to maintain legal compliance.  

The increase could impact your company even if you already pay employees at least $8.50 an hour.  This is because Michigan law also requires employers to post information pertaining to Michigan’s minimum wage in the workplace.  Therefore, many employers will need to update their notice postings as part of their continued legal compliance efforts.

Additionally, employers should review their employee expense reimbursement policies.  If your employees incur work related expenses that are not reimbursed or that are reimbursed at an inappropriate rate, you could violate minimum wage law.  For instance, if an employee earns $8.50 an hour and is not reimbursed for automobile expenses, or other similar expenses, the employee’s total compensation would fall below the minimum wage threshold in violation of law.  

If you have questions regarding Michigan’s wage laws, or any other employment related matter, please contact Masud Labor Law Group. 

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