Michigan Labor Law Guide
Minimum Wage
$10.10
Overtime Wage
$1.5x Regular Wages
Meal Breaks
Not mandated
Rest Breaks
Paid if 20 minutes or less
The minimum wage in the state of Michigan is $10.10 per hour as of 2023. It will increase to $10.33 per hour in January 2024.
Minimum wage in Michigan is applicable to any business that employs two or more people.
Michigan follows federal overtime rules outlined in the Fair Labor Standards Act (FLSA). The FLSA establishes guidelines for minimum wage, overtime pay eligibility, and record keeping.
Non-exempt employees in In Michigan are entitled to overtime pay at a rate of 1.5 times their regular hourly rate for hours worked above 40 hours in a workweek.
Exempt employees are not eligible for overtime pay. Exempt employees are typically salaried employees who meet specific criteria related to their job duties and salary.
Michigan does not have its own laws about meal or rest breaks for employees. Employers in Michigan must follow the federal regulations outlined in the Fair Labor Standards Act (FLSA) regarding breaks.
The FLSA does not require employers to provide meal breaks. However, if an employer gives 30-minutes or longer meal breaks during which time the employee is completely relieved of duties, then the meal break is typically unpaid.
The FLSA also does not mandate rest breaks. However, short breaks up to 20 minutes during the workday are generally considered paid work time.
If you employ young workers, you will need to follow federal laws that govern young employees. The law requires employers to provide meal and rest breaks to young employees.
Michigan does not have a state law mandating paid leave for private-sector employees. However, there may be specific circumstances and exceptions that could impact paid leave policies.
- Family and Medical Leave Act (FMLA): Covered employers in Michigan must comply with the federal FMLA, which provides eligible employees with up to 12 weeks of unpaid leave in a 12-month period for certain qualifying reasons, including the birth or adoption of a child, serious health conditions, or the need to care for a family member with a serious health condition.
- As of my last update, Michigan does not have a statewide law requiring employers to provide paid sick leave to employees. However, certain local ordinances, like those in cities such as Detroit and Lansing, may have specific requirements for paid sick leave.
- Paid time off (PTO) policies, including vacation and personal days, are generally at the discretion of employers. Employers in Michigan may establish their own policies regarding the accrual and use of PTO.
- Michigan law provides job protection for employees called to military service, ensuring they can return to their civilian employment after completing their military duties.
- Michigan law allows employees who do not have sufficient time outside of working hours to vote to take up to two hours of paid time off to vote in an election.
- Michigan law provides job-protected leave for employees who are victims of domestic violence or sexual assault. This leave may include time off to seek medical attention, legal assistance, counseling, or other services related to the domestic violence or sexual assault.
Michigan, like most states, follows federal guidelines in classifying employees as exempt or non-exempt from minimum wage and overtime provisions under the Fair Labor Standards Act (FLSA).
Exempt Employees:
- Salary Basis Test: Exempt employees are typically paid on a salary basis, meaning they receive a fixed salary that is not subject to reduction based on the quality or quantity of work performed.
- Salary Level Test: Exempt employees must earn a minimum salary to qualify for exemption. The minimum salary for exemption is $684 per week.
- Duties Test: Exempt employees must perform specific job duties that fall into one of the FLSA’s exempt categories, such as executive, administrative, professional, or certain computer-related duties.
Non-Exempt Employees:
- Hourly Pay: Non-exempt employees are typically paid on an hourly basis and are entitled to overtime pay for hours worked beyond 40 hours in a workweek.
- Overtime Pay: Overtime pay for non-exempt employees is generally calculated at 1.5 times their regular rate of pay for each hour worked beyond 40 hours in a workweek.
- Employers must keep accurate records of non-exempt employees’ hours worked, wages paid, and other related information.
Michigan has its own state Equal Pay Act, which aims to address and rectify wage disparities based on gender. The Michigan Equal Pay Act (MEPA) is designed to ensure equal pay for substantially similar work and prohibits wage discrimination based on sex.
- Equitable Work: MEPA prohibits employers from paying employees of one sex at a rate less than the rate paid to employees of the opposite sex for substantially similar work. MEPA defines “substantially similar work” as work that requires similar skill, effort, and responsibility and is performed under similar working conditions.
- Employers are prohibited from discriminating against employees in terms of wages or other compensation based on gender.
- The law prohibits employers from retaliating against employees for asserting their rights under Michigan EPA.
- If a violation of MEPA is found, remedies may include back pay, liquidated damages, injunctive relief, and attorney’s fees.
- MEPA works in conjunction with the federal Equal Pay Act (EPA), which also addresses gender-based wage discrimination. Employers must comply with both state and federal laws, and employees may choose to pursue claims under one or both statutes.
Michigan, like many states, follows the doctrine of “at-will” employment, which means that either the employer or the employee can terminate the employment relationship at any time and for any lawful reason, with or without cause or notice. However, there are legal considerations and exceptions to this general principle.
- Employers in Michigan are subject to federal anti-discrimination laws, such as Title VII of the Civil Rights Act, as well as state laws that prohibit discrimination based on race, color, religion, sex, national origin, age, disability, and other protected characteristics.
- Employers may conduct background checks on potential employees but must comply with federal and state laws, including the Fair Credit Reporting Act (FCRA).
- Michigan has laws protecting employees from retaliation for reporting certain violations or engaging in protected activities.
- Equal Employment Opportunity (EEO). Employers should provide equal employment opportunities to all individuals regardless of their protected characteristics, and hiring decisions should be made based on merit and job-related criteria.
- Work Eligibility Verification: All employers in Michigan are required to verify the work eligibility of employees through the Form I-9 process in compliance with federal immigration laws.
- Final Paychecks: Michigan law requires employers to pay an employee’s final wages, including any accrued and unused vacation pay, on the next regularly scheduled payday.
- Unemployment Compensation: Employees who are terminated may be eligible for unemployment benefits through the Michigan Unemployment Insurance Agency.
- Employees generally have the right to inspect their own personnel records within a reasonable time after making a request.
- WARN Act: The federal Worker Adjustment and Retraining Notification (WARN) Act may apply to employers with 100 or more employees, requiring them to provide advance notice of plant closings or mass layoffs.
It is important for employers to remain well-informed about changes in employment laws and to seek guidance from legal professionals to ensure compliance with the latest regulations. It’s advisable to establish clear and meticulously documented employment policies and procedures to aid employers in complying with the labor laws.