HB 4001 Michigan House · 2025-2026 Regular Session

Labor: hours and wages; minimum hourly wage rate; modify. Amends secs. 4 & 4b of 2014 PA 138 (MCL 408.414 & 408.414b) & repeals 2018 PA 337 (MCL 408.931 - 408.945). TIE BAR WITH: HB 4053'25

HB 4001 updates Michigan's minimum wage schedule, setting new rates that increase to $12.00 per hour starting February 21, 2025, and reaching $15.00 by 2029. It replaces the previous 2018 law (PA 337) and adds an annual adjustment mechanism: starting in 2019, the wage will rise each January based on Midwest-region inflation data, capped at 3.5% per year. The bill also modifies youth wage rules, allowing employers to pay new workers under 20 a training rate of 75% of the minimum wage for their first 90 days, while prohibiting displacement of existing workers to hire at this lower rate. This directly affects all hourly workers in Michigan covered by state minimum wage laws, including young workers and employers subject to wage requirements.

Issues: ✓ Labor & Employment

Bill status passed both 4 of 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

House Passage

Jan 2025

Senate Passage

Feb 2025

Governor

Introduced Jan 9, 2025 Last action Feb 4, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

As Passed by the House → Substitute (H-2) · 4 edits

MODERATE

This bill replaces the previous minimum wage law with a new schedule that raises the wage to $12.00 by February 2025 and $15.00 by January 2029. It introduces an automatic annual adjustment mechanism tied to inflation, capped at 3.5%, unless unemployment exceeds 7.5%. The bill also repeals the older 2018 workforce opportunity wage act.

Scope change

The bill expands the scope of wage adjustments by adding an automatic inflation-based increase mechanism and extends the timeline for reaching the target minimum wage compared to the previous static schedule.

TIMELINE

Replaced the previous fixed wage schedule with a new one that sets $12.00 as the minimum by February 2025 and $15.00 by January 2029.

REQUIREMENT

Added a new provision requiring the state treasurer to automatically adjust the minimum wage annually based on the Consumer Price Index, with a maximum increase of 3.5%.

Changed the unemployment threshold that blocks automatic wage increases from 8.5% to 7.5%.

SCOPE

Repealed the 2018 Workforce Opportunity Wage Act (2018 PA 337) and replaced it with this new legislation.

Floor votes · House Jan 23, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 4, 2025

Committee

REFERRED TO COMMITTEE ON REGULATORY AFFAIRS

upper

Feb 4, 2025

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

Jan 23, 2025

Lower · Passed

passed; given immediate effect Roll Call #4 Yeas 63 Nays 41 Excused 0 Not Voting 6

lower

Jan 23, 2025

Lower · Passed

substitute (H-2) adopted

lower

Jan 16, 2025

Committee

referred to second reading

lower

Jan 16, 2025

Lower · Passed

reported with recommendation with substitute (H-2)

lower

Jan 9, 2025

Committee

referred to Committee on Select Committee on Protecting Michigan Employees and Small Businesses

lower

Jan 9, 2025

Introduced

introduced by Representative Rep. John Roth

lower

1 primary · 39 co-sponsors