Michigan tipped minimum wage 2026
The Michigan tipped cash wage is $5.49 per hour. Employers may take a tip credit of up to $8.24 per hour, provided the worker's cash wage plus tips reaches the state minimum of $13.73 per hour for every workweek. [DOL Tipped][MI labor dept.]
Cash wage and tip credit
When tips fall short
If a worker's cash wage plus reported tips do not average to the Michigan minimum of $13.73 per hour over a workweek, the employer must pay the shortfall. The Tip Credit Checker tool runs the math at /tools/tip-credit. Under the 2021 DOL final rule, time spent on non-tip-producing work above 20 percent of the shift (or 30 continuous minutes) must be paid at the full minimum, not the tip-credited rate. [DOL FS-15]
Background
DOL: Increasing to $15.00 on January 1, 2027 Michigan: 40 percent of the full minimum wage, provided the employee receives at least $8.24 in tips. Treasurer-calculated inflation adjustment begins October 2027 under MCL 408.934.