Michigan's minimum wage increased by 25¢ Tuesday, July 1, when it climbed to $7.40 an hour for most workers.

The increase is the last of three increases approved in 2006 by the state legislature and signed into law by Governor Jennifer Granholm. The minimum wage increased to $6.95 October 1, 2006, from $5.15, and then to $7.15 July 1, 2007.

Along with the minimum wage change, the sub-minimum wage for young workers also increased, rising to $6.29 an hour from its current rate of $6.08. The rate will then move to $6.55 an hour July 24, when the federal minimum wage increases and these younger workers become covered by the higher federal rate. The sub-minimum wage is for those younger than 18, and equals 85% of the adult minimum wage.

The minimum wage for tipped employees, such as food servers, will not increase July 1. Employers, however, must ensure that these employees earn $7.40 an hour through a combination of tips and the minimum wage rate of $2.65 for tipped workers. In addition, agricultural workers will continue to be covered, and by law, they must be paid the equivalent of Michigan's minimum wage for their work, whether paid at a piecework rate or an hourly rate.

The Wage and Hour Division Web site offers information about the minimum wage and is available to anyone who has questions about the increase or other provisions of the minimum wage and overtime law at www.michigan.gov/wagehour. Those without Internet access can call the Division and speak with staff by dialing (517) 335-0400 weekdays between 8 a.m. and 5 p.m.

Most Michigan workers will not be affected by the forthcoming increases in the federal minimum wage, as the state's minimum wage rate will remain above the federal rate. The federal minimum hourly wage is currently $5.85 and increases to $6.55 July 24 and to $7.25 July 24, 2009.