There are several new laws and amendments that will take effect in Michigan in 2025.
Many of the bills signed into law by Michigan Gov. Gretchen Whitmer are scheduled to take effect 91 days after the Legislature adjourns for the 2024 regular session.
Here’s a breakdown of what to expect:
Minimum wage increase
Michigan’s minimum wage will increase twice in 2025.
The state’s minimum wage is currently $10.33. On Jan. 1, 2025, it will increase to $10.56. On Feb. 21, 2025, it will increase to $12.48.
The tip credit, or subminimum wage for tipped workers, will be phased out over the next five years. On Feb. 21, 2025, tipped workers will be paid 48% of the minimum hourly wage.
The minimum wage will continue to increase annually and reach $14.97 on Feb. 21, 2028. Tipped workers will earn 100% of the minimum wage on Feb. 21, 2030.
The changes to Michigan’s minimum and subminimum wages are coming because of a major ruling from the Michigan Supreme Court. The court ruled that that it was unconstitutional for the Legislation to adopt-and-amend citizen-initiated petitions. This means the minimum wage and sick time laws, as originally adopted, will be reinstated.
Mothering Justice, Michigan One Fair Wage, Michigan Time to Care sponsored proposals known as the Improved Workforce Opportunity Wage Act (the Wage Act) and the Earned Sick Time Act. They collected enough signatures from Michigan voters to send the proposals to the ballot in the fall of 2018.
Instead of allowing these proposals to go to the ballot, Michigan’s Republican-led Legislature preemptively passed the proposals. After the election, in the same Legislative session, they voted to substantially scale back the laws and make changes that were requested by a business lobby that criticized the new requirements.
On July 31, 2024, the Michigan Supreme Court ruled that the actions taken by the Legislature in 2018 and 2019 to “adopt-and-amend” the voter initiatives were unconstitutional.
---> Timeline: Here’s when Michigan’s minimum wage will reach $14.97
Earned sick time
Michigan’s reinstated Earned Sick Time Act will go into effect on Friday, Feb. 21, 2025.
The Earned Sick Time Act requires employers to grant employees one hour of paid sick time for every 30 hours worked each week. The act makes it clear that employees can use those hours for any reason related to physical or mental health (either their own or that of a family member).
It also notes that if an employee or anyone in their family was a victim of domestic violence or sexual assault, the accrued sick time can be used to address issues such as attending counseling appointments, court proceedings, or school visits.
It also specifies that the same time-measurement increments used to determine the number of hours an employee worked each week had to be used when measuring the amount of sick time the employee used during an absence from work.
The Earned Sick Time Act prohibits employers from interfering with an employee’s attempt to use accrued sick time, though it does allow them to require documentation if absences go over three days.
Unemployment benefit extension
The amount of time Michigan residents can receive unemployment benefits will be extended from 20 to 26 weeks.
Senate Bill 40 also increases the maximum weekly benefit from $362 to $614. The increase comes over a period of years. This is the first increase since 2003.
Automatic voter registration
Beginning on June 30, 2025, qualified voters who apply for a driver’s license or ID will be automatically registered to vote.
CPR in high schools
All high school coaches in Michigan will be required to have a valid certification for CPR and the use of AEDs.
Michigan Gov. Gretchen Whitmer signed two bills that require high school coaches to maintain valid certification for cardiopulmonary resuscitation (CPR) and the use of automated external defibrillators (AED). The legislation also requires schools to have a cardiac emergency response plan in place in case students have a cardiac issue.
Cardiac arrest is when someone’s heart stops beating. According to the American Heart Association, nearly seven in ten children survive cardiac arrest in schools with AEDs.
Income tax credit for organ donation
Starting Jan. 1, 2025, live organ donors in Michigan can get a tax credit of up to $10,000.
Under House Bill 4361, live organ donors are eligible for a tax credit to cover expenses related to the donation, including lost wages and medical bills.
Taxpayers can claim the one-time credit the year of the organ donation, the year before, or the year after. The tax credit can be claimed starting in the 2025 tax year, according to the bill.