minimum wage engraved on desk plaque with gavel behind

Minimum wage increase unlikely to take effect on Jan. 1

The Michigan Bureau of Employment Relations, Wage and Hour Division has announced the state’s scheduled minimum wage increase is not expected to go into effect on Jan. 1, 2021.

Michigan’s Improved Workforce Opportunity Wage Act of 2018 prohibits scheduled minimum wage increases when the state’s annual unemployment rate for the preceding calendar year is above 8.5%.

The state’s 2020 annual unemployment rate, which is determined by the Bureau of Labor Statistics (BLS), U.S. Dept. of Labor, is calculated by using both average labor force and unemployment levels for January through December.

While Michigan’s October unemployment rate continued its downward trend and is 5.5%, the annual average from January through October currently sits at 10.2% and is highly unlikely to dip below the 8.5% threshold when when BLS releases the final 2020 unemployment numbers for Michigan.

If, as expected, the annual unemployment rate does not fall below 8.5%, then effective Jan. 1, 2021:

  • Michigan’s minimum wage will remain at $9.65 an hour.
  • The 85% rate for minors age 16 and 17 remains $8.20 an hour.
  • Tipped employees rates of pay remains $3.67 an hour.
  • The training wage of $4.25 an hour for newly hired employees age 16 and 17 for their first 90 days of employment remains unchanged.

Per statute, future increases to the minimum wage rate will occur in each calendar year following a calendar year for which the unemployment rate for this state, as determined by the BLS, is less than 8.5%.  See MCL 408.934(1) and (2).

Michigan’s minimum wage rate will next increase to $9.87 in the first calendar year following a calendar year for which the annual unemployment rate is less than 8.5%. See MCL 408.934(1)(h).

Visit Michigan.gov/WageHour for more information regarding minimum wage.

Helping Your Employees Stay Healthy

The CDC has said that getting the flu vaccine is more important than ever during 2020-2021 to protect yourself, your family and your community from flu. A flu vaccine this season can also help reduce the burden on our healthcare systems responding to the COVID-19 pandemic and save medical resources for care of COVID-19 patients. If you haven’t gotten your flu vaccine yet, get vaccinated now.

Blue Cross Blue Shield of Michigan has made it simple to inform your employees about the flu shot and resources available to them. Check out the various Outlook email templates, posters, FAQs and more on the BCBS ENGAGE web page. You might also want to know the symptoms of the flu versus COVID-19.
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2021 Fuel Economy Guide Now Available

2021 Fuel Economy Guide Now Available

Federal law requires new-car dealers to provide the Guide to customers upon request.

The U.S. Department of Energy and the Environmental Protection Agency have just released the 2021 Fuel Economy Guide. The Guide provides detailed fuel economy estimates for model year 2021 light-duty vehicles, along with estimated annual fuel costs and other information for prospective purchasers. By law, dealers must display the Guide and provide copies to customers upon request. Dealers may choose to (1) print copies to have on hand or (2) provide access to the electronic version/website on a computer or electronic device in the display area. The regulations ensure that prospective customers have ready access to fuel economy information for current model year vehicles. Click here to view the EPA/DOE letter detailing how to make the Guide available to customers.

2021 Fuel Economy Guide

  • Enhanced Electronic Access: The 2021 Fuel Economy Guide will be published in electronic format only. You can download the latest Fuel Economy Guide from the government’s fuel economy website by clicking here or visiting the dealer page and print copies from the electronic file as needed. The online Guide will be updated periodically to include newly released vehicle models and current fuel cost estimates.
  • Display Signage: Dealers can download and print a sign/poster to place in their display area directing customers to the Fuel Economy Guide (this is optional and not required by law). Signage is also available on the dealer page.