MICHIGAN - As Michigan heads into 2026, the state is undergoing a massive transformation of its labor laws and consumer protections. Following a landmark Supreme Court ruling and significant legislative shifts, several new statutes are set to take effect on January 1st.
From a significant minimum wage hike to new protections against automated "bots," here are five of the most impactful new laws taking effect in Michigan this January.
1. The 2026 Minimum Wage Hike
After years of legal battles, Michigan is implementing a significant scheduled increase to the State minimum wage. This change is part of a multi-year phase-in that will eventually reach $15 by 2027.
- The New Rate: Starting January 1st, the general minimum wage increases from $12.48 to $13.73 per hour.
- Minor & Training Wages: The 85% rate for minors (ages 16–17) increases to $11.67, while the $4.25 training wage for new hires under 20 remains unchanged for their first 90 days.
- Who it covers: This applies to all Michigan employers with two or more employees who are 16 years of age or older.
2. The Tipped Wage "Reset."
In one of the most significant changes for the service industry, Michigan is beginning the gradual phase-out of the lower tipped minimum wage.
- The Change: On January 1st, the tipped employee rate increases to $5.49 per hour.
- The 40% Rule: This new rate is set at 40% of the full minimum wage. Employers are still required to ensure that an employee's total compensation (base pay plus tips) equals or exceeds the full $13.73 per hour; if it doesn't, the employer must pay the difference.
3. The "Taylor Swift" Bot Ban
Michigan is cracking down on the technology that makes it nearly impossible for fans to buy concert and sporting event tickets at face value. A new package of bills, often called the "Taylor Swift Bills," officially becomes enforceable on January 1st.
- The Law: It is now illegal to use automated "bots" to purchase large numbers of tickets online.
- Penalties: Violators can be hit with a civil fine of $5,000 per ticket purchased using bots, with enforcement handled directly by the Department of the Attorney General.
4. Enhanced Paid Sick Time for Small Businesses
While Michigan's Earned Sick Time Act (ESTA) expanded to larger companies earlier in 2025, a critical deadline for the State smallest employers arrives this winter.
- Slight Business Inclusion: By January 1st, 2026, all employers—including those with 10 or fewer employees—must be fully compliant with the new accrual and usage rules.
- The Standard: Employees accrue 1 hour of paid sick time for every 30 hours worked. While large employers must allow up to 72 hours of use per year, "small" businesses (10 or fewer) must provide at least 40 hours of paid sick time.
5. Gas Tax Relief for Motorists
As part of a legislative package aimed at lowering costs for residents, Michigan is shifting how it taxes motor fuel at the pump.
- Ending the Prepaid Sales Tax: Starting January 1st, the state will no longer impose prepaid sales tax on motor fuel.
- The Impact: This move is designed to simplify the tax structure for wholesalers and retailers, to provide greater stability and potential relief for gas-station consumers.
Additional 2026 Updates
Beyond these five laws, Michigan is also increasing the Unemployment Weekly Benefit Rate starting January 1st to better align with the rising cost of living. Additionally, new building codes allow child care centers to install temporary classroom locks—similar to those used in K-12 schools—to enhance security during emergencies.
