Michigan 2017: The Year of Pay/Salary Changes
Business is known for change and without change, we simply cease to exist. Well, 2017 might go down as the year of change! Of course, our recent election is bound to bring change. There are some significant 2016 payroll changes that will affect your 2017 financial results.
- Overtime: The final ruling allows for an increase in the threshold to $913/week and does not make any changes to the duties test for executive, administrative or professional employees.
- Minimum Wage Increase: As most know by now, the minimum wage increased in Michigan and 20 other states. Michigan increased to $8.90 effective January 1, 2017. Michigan, like many states, has a minimum wage higher than the federal rate. Click here for a complete list. If you have not adjusted your pricing, forecasting, etc., you will want to do so immediately.
- Prevailing Wage Adjustment: On December 27, 2016, The U.S. Office of Personnel Management issued a letter addressing adjustments in prevailing wages. That letter may be seen in its entirety here.
- Salary Increases: Despite what we know (the squeeze of a tight job market), salaries are expected to be boosted only around 3% on an average in the U.S. According to SHRM, this is exactly what it increased in 2016. In July of 2016, WordatWork released a budget survey. This information can be seen here.