Michigan tipped minimum wage

In effect since January 1, 2026

$5.49 minimum cash wage

Employers can take a tip credit of up to $8.24 an hour, as long as cash wages plus tips reach the $13.73 minimum for every hour worked.

Next change: on January 1, 2027 the minimum wage becomes $15.00.

Minimum wage

$13.73

Tipped cash wage

$5.49

Max tip credit

$8.24

Federal cash wage

$2.13

with $5.12 credit

Tip credit check

Enter one pay period for a tipped employee in Michigan. The calculator shows whether tips covered the gap between the cash wage and the minimum wage, and what you owe if they didn't.

Hours worked Tips received ($) Cash wage paid per hour ($)

Assumes a single workweek and straight-time hours. Overtime, tip pools and service charges have separate rules.

Rules that apply everywhere

The employer must tell tipped employees about the tip credit before taking it, under federal rules.
Tips belong to the employee. Managers and supervisors can't share in a tip pool.
If tips and cash wages fall short of the minimum in a workweek, the employer pays the difference.

Federal tip rules: DOL Fact Sheet #15.

Running payroll in Michigan?

Sources

Michigan Legislature, MCL 408.934 (Improved Workforce Opportunity Wage Act); enforced by Michigan LEO Wage & Hour Division · data as of January 1, 2026 · last checked October 9, 2026

We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.