News Bite

Jan. 1 State Minimum Wage Hike Likely Suspended Due To High Unemployment

State's 10.2% unemployment rate elevated by epidemic and lockdowns

A rise in Michigan's minimum wage law scheduled to go into effect on Jan. 1, 2021 probably won't happen, due to a provision in the law that halts increases when unemployment rates meet a specific level.

The law initiated by a statewide petition drive in 2018 suspends scheduled increases if the annual unemployment rate rises above 8.5%. The rate in Michigan from January through October 2020 is running at 10.2%.

The announcement was made by the Michigan Bureau of Employment Relations.

Michigan’s minimum wage is currently $9.65 an hour. It is scheduled to increase to $9.87 an hour, but this is not likely to happen now.

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.