Michigan Restaurant Minimum Wage 2027

✓ Verified against Michigan LEO on November 9, 2026

On January 1, 2027, Michigan's minimum wage rises from $13.73 to $15.00 per hour. The tipped cash wage rises from $5.49 to $6.30 per hour (42% of the minimum wage). It is the largest January 2027 increase among the ten states we track, and the tipped percentage keeps rising every year until 2031.

Minimum wage
$15.00
+$1.27
Tipped cash wage
$6.30
+$0.81
Under 18 (85%)
$12.75
+$1.08
Effective
Jan 1, 2027
 

2026 vs. 2027 rates

Rate2026Jan 1, 2027Change
Minimum wage$13.73$15.00+$1.27
Tipped employee cash wage$5.49 (40%)$6.30 (42%)+$0.81
Tips needed per hour (max tip credit)$8.24$8.70+$0.46
Employees under 18 (85%)$11.67$12.75+$1.08
Training wage (new hires under 20, first 90 days)$4.25$4.25—

Michigan's minimum wage law covers employers with 2 or more employees. Where state and federal rules both apply, the stricter one governs.

What will it cost your restaurant?

Enter only the staff who are paid below the new 2027 rates today. Everything is calculated in your browser; nothing is sent anywhere.

Tipped staff (servers, bartenders)
Hourly staff paid less than $15.00 (kitchen, hosts, dishwashers)
Employees under 18 (optional)
Monthly sales (optional)
Added labor cost from January 1, 2027
$0 / month
$0 / year

Assumes 52 weeks a year. Tipped staff: only the employer cash wage changes (+$0.81/hr), assuming tips still bring them to $15.00. If tips fall short, you must pay the difference, so your real cost can be higher.

Example

A restaurant with 10 servers working 25 hours a week and 5 kitchen staff earning $13.73 working 30 hours a week:

At $80,000 in monthly sales, that is about 2.3% of sales.

The tipped wage keeps rising after 2027

Michigan's 2025 law raises the tipped cash wage as a share of the minimum wage by 2 points every year. The tip credit you can take shrinks each year.

EffectiveTipped cash wage (% of minimum)Rate
Jan 1, 202640%$5.49
Jan 1, 202742%$6.30
202844%Not yet announced
202946%Not yet announced
203048%Not yet announced
2031 onward50%Not yet announced

After 2027 the minimum wage itself is adjusted for inflation each year, so the dollar amounts for 2028 and later are not known yet. We will update this page when Michigan announces them.

Before January 1: checklist

Common mistakes

Paying servers $5.49 after January 1. The tipped cash wage changes too, to $6.30.

Forgetting minors. The under-18 rate moves from $11.67 to $12.75.

Assuming the tip credit is fixed. In Michigan it is a percentage that changes every year.

FAQ

Is Michigan's minimum wage going up in 2027?

Yes. It rises from $13.73 to $15.00 per hour on January 1, 2027.

What is the tipped minimum wage in Michigan in 2027?

$6.30 per hour, which is 42% of the minimum wage. If an employee's tips plus $6.30 do not reach $15.00 per hour, the employer must pay the difference.

Can I pay employees under 18 less?

Yes. Employees under 18 may be paid 85% of the minimum wage: $12.75 per hour from January 1, 2027.

Is there still a training wage?

Yes. New employees under 20 may be paid $4.25 per hour for their first 90 calendar days.

Does this apply to a small restaurant?

Michigan's law covers employers with 2 or more employees.

What happens in 2028?

The minimum wage is adjusted for inflation and the tipped share rises to 44%. Michigan has not announced the 2028 dollar amounts yet.

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Sources

Rates set by the Improved Workforce Opportunity Wage Act as amended in 2025 (effective February 21, 2025). Last verified November 9, 2026.