Minimum wage increased to $12 per hour starting 2022 but changes likely

Michigan Legislature passes minimum wage increase to $12 per hour but employees should not count on any extra money just yet.

The Detroit Free Press is reporting that a minimum wage increase has been approved by the Michigan Legislature. It calls for a gradual increase from $9.25 to $10 on Jan. 1, 2019, $10.65 on Jan. 1, 2020, $11.35 on Jan. 1, 2021 and $12 on Jan. 1, 2022.

Unfortunately, it is anticipated that changes will be made before employees see any increase. Republican lawmakers wanted to keep the minimum wage issue off the November 6, 2018 ballot and are expected to make changes before the law takes effect.

We are strong advocates for a living wage and want to see this increase stay. A higher minimum wage will have a positive impact on workers’ compensation benefits. Here is another reason why Michigan employees need to stick together.

Nobody can predict when they get hurt at work and it can be a financial disaster. Employees hurt on-the-job are entitled to 80% of their after-tax average weekly wage if disabled. However, these weekly checks are capped at 90% of the state-wide average weekly wage. The idea is to limit lost wages to what most employee earn. High wage earners are stuck with an arbitrary cap regardless of how much they are losing.

A minimum wage increase should result in a higher state-wide average weekly wage. This means the weekly cap for disabled employees will go up. We believe this is a step in the right direction.

Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (844) 201-9497 for a free consultation today.

Related information:

Maximum rate is $900 per week for 2018

Photo courtesy of Creative Commons, by uhuru1701.

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