Your first paycheck from your new job in Michigan does not pay you nearly as much as you expected. Part of the reason for this is that there are deductions from your paycheck, such as those for tax purposes. But that is not the whole issue. Instead, you find that your employer has only been paying you $7.25 per hour.
When you confront them about this, they say that they are simply paying in line with federal regulations. And the federal minimum wage has indeed been set at $7.25 per hour. But is that actually how much you deserve to be paid in Michigan?
The higher rate must be paid
For most employers, the reality is that they have to pay the higher minimum wage if there is a discrepancy between the federal regulation and the state regulation. In Michigan, the basic minimum wage is set at $12.48 per hour. Since this is higher than the federal rate, your employer needs to pay you $12.48, not $7.25.
This may mean that they are intentionally committing wage theft and trying to avoid paying you the money you are owed. But it could also be a misunderstanding. In some other states, such as Alabama, there is no minimum wage at the state level. This means that the minimum is set at $7.25, per the federal law. However, your employer needs to understand that if there is a higher state minimum wage, that is the amount that must be paid.
If you are not being paid correctly and have experienced wage theft, make sure you understand all of your rights and your legal options.