Minimum wage gets boost above the bare minimum

By Marie E. Matyjaszek

Michigan rang in the new year with a boost in its minimum wage, increasing from $10.10 to $10.33 per hour. Tipped employees also saw an increase to $3.93 per hour. While many do not consider this a livable wage, let alone support a family, income is very important in family law as it directly impacts support payments.

If a person is actively working and earning a specific wage, it’s pretty easy to figure out support based off paychecks and W2s. At times clarification is needed in terms of retirement contributions, union dues, health care insurance, etc. but W2 employees bring a smile to everyone’s face in family court. There’s less to argue about if a party’s income is screaming at you in black and white.

If a party to a case is not working, but could, what figure is used to determine their income? I’m glad you asked. The 2021 Michigan Child Support Formula Manual Section 2.01(G) addresses imputation of income, and multiple factors must be considered before the potential income is determined. There is no minimum or maximum requirement for a person’s imputed income.

Because the courts can assign a party “pretend income” as I like to call it, knowing the correct minimum wage amount is imperative to ensuring that the formula recommended amount is as accurate as possible.

 It’s also important to recognize that minimum wage amounts vary from state to state, and certain cities can top the state’s minimum wage. For example, Washington has the highest state wage at $16.28 per hour, but the city of Seattle provides $19.97 per hour.

The U.S. Department of Labor’s website contains valuable information about each state’s rate and if any special circumstances apply. Generally, if a state doesn’t have a minimum wage law, employers subject to the Fair Labor Standards Act must follow the current federal minimum wage of $7.25 an hour, a figure that has been in effect since 2009.

No matter where you live, minimum wage will always be debated, especially during election years. Cooperating with any court support investigation will aid in reaching a right-sized support order. Advocate for yourself and don’t assume gaps in your testimony or questionnaires will be filled in correctly. If you’re in control, you can do more than the bare minimum.

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The author is a Judicial Attorney at the Washtenaw County Trial Court; however, the views expressed in this column are her own. She can be reached by e-mailing her at matyjasz@hotmail.com.

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