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 wage that one can live on, 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 US 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, with this figure having 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.
