Some states have a tipped minimum wage equal to the minimum wage. That includes Washington, the state with the highest tipped wage in the nation at $16.66. On the other end, the federal government mandates states pay at least $2.13 per hour to tipped employees. So there are 16 states tied for the lowest tipped wage at $2.13.

Democratic Gov. Gretchen Whitmer has signed a compromise that scales back paid sick leave and wages for tipped workers in an effort to appease businesses following a minimum wage hike

Governor Gretchen Whitmer has signed bills that change minimum wage and requires most employers institute paid sick days.

The tip credit, or subminimum wage, was expected to increase to 48% of the minimum wage on Feb. 21, 2025, continue to increase, and then be phased out completely by Feb. 21, 2029. The laws Whitmer signed made it so the subminimum wage remained at 38% and will instead increase by 2% each year through Jan. 1, 2031, when it will reach 50%.

More than six years ago, committees gathered enough petition signatures to put minimum wage and sick leave proposals on the ballot in November 2018. However, Republican lawmakers adopted the measures before Election Day, keeping them off the ballot, and then returned after Election Day to significantly weaken the requirements.