For 10 years, the minimum hourly wage in the United States under the Federal Fair Labor Standards Act was the same as under the Michigan Minimum Wage Law: $5.15. During this period, and for decades previously, the Michigan minimum wage was largely ignored because employers are subject to the federal minimum wage law unless the federal minimum wage is lower than the state minimum wage. During the last several years the $5.15 per hour minimum wage affected very few jobs and for most employers was not a serious consideration.

On May 25, 2007, President Bush signed federal legislation that increased the minimum wage under the Federal Fair Labor Standards Act as of July 24, 2007. It is ironic that the debate concerning whether to increase the federal minimum wage was consistently in the news for 2 years but when it was finally enacted, there was very little coverage. The new federal requirements raised the minimum wage to $5.85 per hour this past summer, $6.55 per hour next summer and $7.25 per hour in 2009.

But wait: in Michigan the situation is different. In March, 2006, with a breathtaking display of legislative logic for a state desperately in need of jobs, the Michigan legislature raised the minimum wage faster and farther than the new federal requirement.

Beginning October 1, 2006 the minimum wage in Michigan was increased by $1.80 to $6.95 per hour; beginning July 1, 2007 it rose to $7.15 per hour and, beginning July 1, 2008 the minimum wage will be $7.40 per hour. Therefore, the federal minimum wage increase enacted in May, 2007 is irrelevant to Michigan employers. The federal or state legislation, whichever is more beneficial for employees, must be followed. In Michigan it is the state legislation. On July 1, 2007, the Michigan minimum wage became 39% higher than it was 10 months previously.

Those of you who have entry level or low skilled jobs need to be aware of this major change. Although only a few jobs pay $5.15 per hour, I believe the $7.15 and certainly the $7.40 per hour minimums affect many jobs.

For further information regarding these matters, please contact Mr. Boyer at 248.740.5666 or click here to send an email.