Michigan Minimum Wage Hits $15 on Jan. 1: What Detroit Workers Will Earn in 2027

DETROIT, MI — Michigan's minimum wage climbs to $15.00 an hour on January 1, 2027, the final step of the raise lawmakers locked in last year. For a full-time worker on the floor, that is about $2,640 more a year before taxes, and it lands the same day in Detroit, Dearborn, Southfield and Warren alike. Tipped and teen workers get raises too.

The 2027 Michigan minimum wage: $15.00 for most workers, $6.30 for tipped workers, $12.75 for workers under 18. One statewide floor, from Eight Mile to the Upper Peninsula.

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Effective date	January 1, 2027
Standard minimum wage	$15.00 an hour (up from $13.73)
Tipped cash wage	$6.30 an hour, 42% of the minimum (up from $5.49)
Workers under 18	$12.75 an hour, 85% of the minimum (up from $11.67)
Training wage	$4.25 an hour, new hires under 20, first 90 days only
Next change	Inflation adjustment for January 1, 2028

💵 What Changes on January 1

The $1.27 jump finishes the schedule Senate Bill 8 set when it became Public Act 1 of 2025. The Michigan Department of Labor and Economic Opportunity lists the $15.00 rate as effective January 1, 2027, and its minimum wage FAQ carries the full rate table.

The state law covers employers with two or more employees. Where federal and state rules both apply, employers follow the stricter one, and at $15.00 Michigan's floor sits more than double the $7.25 federal minimum.

If your employer already pays above $15, January 1 won't change your check. The workers who see it are the ones on or near the floor: entry-level retail, fast food, some warehouse and home care jobs.

Tipped Workers: $6.30 Cash Wage, and the Tip Guarantee Still Applies

Restaurant and bar workers along Woodward, in Greektown and out in Royal Oak get their own raise. The tipped cash wage moves from 40% to 42% of the minimum, which works out to $6.30 an hour.

Tips plus the cash wage still have to reach at least $15.00 for every hour worked. If a slow Tuesday leaves you short, the employer covers the difference. So keep reporting your tips.

The tipped share keeps climbing after 2027 under the same law: 44% in 2028, 46% in 2029, 48% in 2030 and 50% starting January 1, 2031, according to the House Fiscal Agency's analysis of SB 8.

Teens, New Hires and the 2028 Inflation Adjustment

Workers under 18 can be paid 85% of the minimum, which becomes $12.75. Employers can also pay new hires under 20 a $4.25 training wage, but only for their first 90 calendar days.

After 2027 the state stops writing fixed numbers into the law. Starting in October 2027, the state treasurer adjusts the rate for inflation using the Midwest consumer price index, with the new rate taking effect the following January 1. The adjustment is skipped if the state's unemployment rate for the preceding year was 8.5% or higher. No 2028 figure exists yet.

Why Detroit and the Suburbs Share One Wage Floor

Some metros run a city-versus-suburb patchwork. Not this one. Michigan law (MCL 123.1385) bars local governments from requiring employers to pay more than the state minimum. A cashier in Corktown, one at Fairlane Town Center in Dearborn and one off I-696 in Warren all start from the same $15.00 legal floor.

🔎 Where to Look for Better-Than-Minimum Pay

The new floor is a minimum, not a going rate. Health care support, logistics near Detroit Metro Airport and the grocery chains are good places to compare offers, and holiday hiring is open now.

Start here:

Michigan Minimum Wage 2027: FAQ

When does Michigan's minimum wage go to $15?

January 1, 2027. The rate rises from $13.73 to $15.00 an hour for most workers.

What is the tipped minimum wage in Michigan in 2027?

$6.30 an hour, 42% of the standard minimum. Tips plus wages must still add up to at least $15.00 an hour, or the employer pays the difference.

Can Detroit set a higher minimum wage than the state?

No. State law bars local governments from requiring employers to pay more than the state minimum, so Detroit and its suburbs share the same floor.

Will the minimum wage go up again in 2028?

Probably, but the amount isn't set. Starting in October 2027 the state treasurer calculates an inflation adjustment that takes effect January 1, unless the state's unemployment rate for the preceding year was 8.5% or higher.

Get Ahead of the January Raise

Want a job that already pays above the new floor? Create a free LocalJobPage account to save searches and get new Detroit listings first. For role-by-role guides, visit the Career Center.

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