Michigan Tip Laws (2026)

Michigan’s minimum wage is $13.73 an hour in 2026 and the tipped cash wage is $5.49 (40%), rising to $15.00 and $6.30 on January 1, 2027. Michigan law says tips remain the property of the employee who receives them and provides only for voluntary sharing with non-managerial staff in the chain of service; official guidance does not say whether an employer can require a tip pool.

Last reviewed October 11, 2026.

At a glance

Minimum wage	$13.73 an hour in 2026; $15.00 from January 1, 2027
Tipped cash wage	$5.49 (40%) in 2026; $6.30 (42%) from January 1, 2027
Tip credit conditions	Written notice at hire and written consent
Tip sharing	Voluntary, with chain-of-service staff who are not managers
Required tip pools	Not addressed by official guidance
Card fees taken from tips	No state rule; federal rule applies
Service charges	Written notice of how they are distributed
Local minimum wages	Preempted

Minimum wage and tipped wage

Under 2025 Public Act 1, the minimum wage is $13.73 an hour in 2026 and $15.00 from January 1, 2027, then indexed to inflation. The tipped cash wage is 40% of the minimum in 2026 ($5.49) and 42% in 2027 ($6.30), rising 2 points a year to 50% in 2031 (MCL 408.934, 408.934d). The law covers employers with 2 or more employees.

Conditions for the tip credit

An employer can pay the tipped rate only if the employee keeps all their tips (apart from voluntary sharing), declares tips for tax purposes, has any shortfall made up by the employer, and was told about the rules in writing at or before hire and gave written consent (MCL 408.934d). When a credit is taken, the employee signs a dated statement of tips received before the paycheck is issued.

Tip sharing and tip pools

The law lets an employee voluntarily share tips with another employee who is directly or indirectly part of the chain of service and whose duties are not primarily managerial or supervisory, and it says tips remain the property of the employee who receives them whether or not a tip credit is taken (MCL 408.934d).

It does not mention employer-required pools, and no state guidance says whether they are allowed. A state restaurant industry association says they are not; until official guidance appears, get legal advice before making a pool mandatory.

Credit card tips

Michigan has no rule on card fees, so the federal guidance applies: only the actual processing percentage may be deducted. Official guidance does not say whether the rule that tipped employees keep the entirety of their tips bars the deduction for employers that take a tip credit.

Service charges

Gratuities and service charges paid to an employee are in addition to wages and do not count toward them, and employers must give employees and consumers written notice of how they distribute service charges (MCL 408.934d).

Records

Records are kept for at least 3 years after the employee’s last pay period. Cities and counties cannot set a higher minimum wage (MCL 123.1385).

Michigan tip pooling FAQ

What is the tipped minimum wage in Michigan?

$5.49 an hour in 2026 (40% of the $13.73 minimum) and $6.30 from January 1, 2027 (42% of $15.00).

Can a Michigan employer require tip pooling?

Michigan law provides only for voluntary sharing with non-managerial staff in the chain of service, and official guidance does not say whether an employer can require a pool. Get legal advice before making a pool mandatory.

Does Michigan require consent for the tip credit?

Yes. The employee must be told about the rules in writing at or before hire and give written consent.

Can managers receive shared tips in Michigan?

No. Voluntary sharing is allowed only with employees whose duties are not primarily managerial or supervisory.

Official sources

This page summarizes the law for restaurant operators and staff; it is not legal advice. Wages and rules change, and cities can set their own minimums. Check the linked official sources, or ask an employment lawyer, before changing how you handle tips.