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HB 4075

Labor: hours and wages; minimum wage; modify. Amends sec. 4 of 2018 PA 337 (MCL 408.934).

2025-2026 Regular Session Introduced by Emily Dievendorf and 8 co-sponsors

Raises Michigan's minimum wage on a staged 2025-2030 schedule and links future increases to CPI with an unemployment-rate safety valve.

bill electronically reproduced 02/12/2025
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Bill Summary · HB 4075

HB 4075 — Summary (Amendment to 2018 PA 337 / MCL 408.934)

Status: Introduced (electronically reproduced 02/12/2025); referred to Committee on Economic Competitiveness. Sponsor: Rep. Dylan Wegela. Related/companion: SB 2229.

Main purpose

To change Michigan’s statutory minimum wage schedule by (1) increasing the base minimum wage to a higher level in 2025 and phasing in larger, scheduled increases through 2030, and (2) continuing an annual inflation (CPI) adjustment mechanism for future increases with an unemployment-rate safety valve.

Key provisions

  • New scheduled minimum wages (as stated in the bill text):
    • $12.48 effective February 21, 2025
    • $14.00 effective January 1, 2026
    • $15.50 effective January 1, 2027
    • $17.00 effective January 1, 2028
    • $18.50 effective January 1, 2029
    • $20.00 effective January 1, 2030
  • Annual inflation adjustments:
    • Requires the State Treasurer to calculate an adjusted minimum wage every October (bill language indicates this calculation begins in 2030) using the 12‑month percentage change in the CPI‑W (or successor index) published by the U.S. Bureau of Labor Statistics.
    • The Treasurer must publish the adjusted rate by November 1 and the adjusted rate becomes effective January 1 of the following year.
  • Unemployment safety valve:
    • A calculated CPI-based increase does not take effect for the coming year if Michigan’s unemployment rate for the prior year is 8.5% or greater (as measured by the BLS).
  • The bill amends section 4 of the Improved Workforce Opportunity Wage Act (2018 PA 337), MCL 408.934. It preserves the framework of that Act; statutory exceptions in the Act (for certain workers or categories) remain applicable unless otherwise changed.

Who is affected

  • Workers covered by Michigan’s minimum wage law (i.e., employees subject to the Improved Workforce Opportunity Wage Act), including many low‑ and moderate‑wage workers across industries.
  • Employers operating in Michigan who must pay the state minimum wage will face higher labor costs as the schedule is phased in.
  • Markets and public programs that rely on wage levels (e.g., payrolls, pricing, small businesses, nonprofit employers, government contracting) could experience budgetary or operational effects.

Potential fiscal/economic impact

  • Likely raises earnings for many low‑wage workers.
  • Employers will face increased wage bills; potential responses could include price increases, adjustments to staffing/hours, or increased automation — the magnitude depends on firm size/sector.
  • The automatic CPI adjustments provide predictability but the 8.5% unemployment trigger can delay increases in recessionary conditions.

Procedural/timeline notes

  • Introduced February 12, 2025 and referred to the Committee on Economic Competitiveness.
  • Legislative activity (committee referrals and calendar placement) occurred in spring 2025; consult the legislature’s official docket for current status and any amendments.

Compiled from official sources — confirm details with the bill’s official record.

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