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Frank A. Douglass Insurance Agency

2021 Minimum Wage Hike Unlikely

Minimum wage workers in Michigan will probably not get a raise next month.

The base minimum wage was supposed to increase from $9.65 an hour to $9.87 an hour on January 1st.

However, the law that mandates that also says that the increase will not take effect if the state’s unemployment rate for the previous year is higher than 8.5 percent.

Michigan’s most recent monthly unemployment rate – for the month of October – was 5.5 percent. But, because of high rates caused by the pandemic during the spring and summer, the 10-month average was 10.2 percent.

On Friday, the Michigan Bureau of Employment Relations announced that it’s highly unlikely that the year-end rate will drop enough to trigger the minimum wage increase.

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