Michigan Labor Laws

The Fair Labor Standards Act (1938) sets standards for hourly wage rates and overtime pay in the US, requiring employers to maintain accurate records of their employees’ working hours.  These laws serve as directives for employers, helping to prevent abuse and exploitation across various sectors, including non-profit, public, and private organizations.

Michigan labor laws provide increased protections for employees as compared to the FLSA. Minimum wage, overtime and break laws in the state are as follows:

Violations of Michigan’s wage laws may result in fines, penalties, and damages. Workers can file a complaint with the state’s Department of Labor’s Wage and Hour Division to initiate an investigation and legal action.

Michigan’s Elliott-Larsen Civil Rights Act of 1976 protects employees from discrimination during the hiring process based on:

It also prohibits employers from treating working employees in ways that limit employment opportunities. Exceptions include bona fide retirement policies and employment by a parent, spouse, or child.

Employment contracts in Michigan uphold the employment-at-will policy, where both the employer and employee can terminate the work relationship at any time and without any reason. However, employees can not be fired for whistleblowing, refusal to engage in illegal activities, or exercising their legal rights such as filing for worker’s compensation.

As of March 2024, Michigan is not a right-to-work state. This means that employees may be required to join unions or pay membership fees as a condition of employment or under collective bargaining agreements. Additionally, an employee’s membership with a union can not affect their employment opportunities.

Final payment of wages in Michigan to employees who voluntarily leave or are terminated must be made on the next payday. Employees engaged in crop harvesting by hand must be paid final wages within one working day of termination.

For contractual employees whose wages can not be accurately determined at the time of termination or resignation, employers can initially pay an estimated amount of earned wages. Remaining wages (if any) can be paid once he contract officially ends.  

The following laws also influence employment in Michigan:

• Health Insurance Laws: The Michigan Department of Insurance and Financial Services requires employers with 50 or more employees to provide group health insurance to workers and their dependents including spouses, parents, or children. An employee who loses coverage from their employer after a qualifying life event can temporarily continue their group health insurance for 18 to 36 months under the Consolidated Omnibus Budget Reconciliation Act (COBRA). Qualifying events include job loss (voluntary or involuntary), reduction in hours, divorce or legal separation, the death of a covered employee, Medicare eligibility for a covered employee, and the loss of health coverage for a dependent or child under the plan. Michigan does not provide state continuation plans like “mini-COBRA” for employees at companies with fewer than 20 full-time employees.
• Workplace Safety Laws: The Michigan Occupational Safety and Health Administration (MIOSHA) enforces workplace safety and health policies, provides safety training and education, and develops plans to prevent workplace hazards as outlined by the Michigan State Plan. This plan applies to private-sector workplaces, excluding maritime employment, USPS contract workers, businesses operated by Native American tribes on reservations, and aircraft cabin crew conditions. It also covers state and local government employers.
• Whistleblower Protection Laws: Michigan’s Whistleblowers Protection Act, 1980, safeguards employees from retaliation when they report to public authorities, verbally or in writing, violations of local, state, or federal laws. It also prohibits employers from discharging or discriminating against employees for participation in investigations and hearings. Employees who believe they have been wrongfully dismissed for whistleblowing can file a civil lawsuit within 90 days of the incident. However, employees can not make false reports.
• Background Check Laws: Under Michigan’s Clean Slate Act, an applicant or employee’s criminal history is automatically expunged after seven years for misdemeanors and after 10 years for felonies, thus expanding employment eligibility. The state’s Ban the Box law also aims to provide a fair chance at employment by delaying background checks and prohibiting questions related to an applicant’s prior criminal history during the hiring process, unless required by state or federal law.
• Social Media Laws: The state’s Internet Privacy Protection Act (2012) prohibits employers and educational institutions in Michigan from requesting or requiring individuals to provide access to or disclose information related to personal internet accounts. Employers cannot penalize employees or applicants for refusing to grant such access. However, the act allows employers to monitor and request access to work-related accounts or devices, and investigate specific misconduct related to an employee’s personal accounts, if deemed necessary.
• Drug and Alcohol Testing Laws: Michigan’s drug testing laws primarily apply to public employees in safety-sensitive roles like law enforcement, healthcare, and those with commercial driver’s licenses. Public employees may undergo drug testing before employment, under reasonable suspicion, post-accident, randomly, or as a follow-up routine. However, as of October 2023, pre-employment drug testing for marijuana is no longer required for most public roles. There are no specific laws for drug testing in the private sector but employers can choose to implement policies that restrict the use of marijuana in the workplace and discipline employees who fail drug tests, even if they use marijuana off the job.
• Recordkeeping Laws: Michigan’s recordkeeping laws require employers to maintain accurate identification and employment records of their employees for at least three years. Additional records are required for piecework, payroll debit cards, commission-based pay, minors, and tipped employees.

A minimum wage is the lowest hourly wage that an employer is legally required to pay an employee for any work they perform. As of January 1, 2024, Michigan’s minimum wage is $10.33 per hour. This rate is set to increase to $10.56 per hour from January 1, 2025.

However, following the updated Improved Workforce Opportunity Wage Act (IWOWA), Michigan’s minimum wage will increase to $12.48 per hour from February 21, 2025. This amendment covers all employers with two or more employees, aged 16 and older.

The Improved Workforce Opportunity Wage Act, also known as Public Act 337 of 2018, allows employers to take tip credit from a tipped employee’s hourly wages, provided that certain conditions are met.

As of January 1, 2024, the minimum wage for tipped employees in Michigan is $3.93 per hour, with a tip credit of $6.40.

If a tipped employee’s total pay (tips + minimum wage) falls short of the state’s minimum wage requirements, the employer must cover the difference.

Tipped employees working overtime must be paid at least 1 1⁄2 times their regular rate, with a minimum hourly wage set at $9.10 for every hour worked overtime.

Employers who violate the wage rights of tipped employees can be subject to fines of up to $1,000 in addition to covering the employee’s wages, damages, and any court or attorney fees. 

Employers in Michigan are allowed to pay employees aged between 16 and 19 a lower wage of $4.25 per hour. This training wage is applicable for the first 90 days of employment.

Minors aged 16 and 17 can earn 85% of the state’s minimum wage. Currently, this rate stands at $8.78 per hour.

Generally, an employee’s wages can be paid on a weekly or biweekly basis, according to Michigan payment law.  For weekly or biweekly paydays, wages must be paid within two weeks of the work period in which they were earned.

Employers can also choose to set monthly paydays, where wages should be paid by the first day of the calendar month following the month in which they were earned.

Workers involved in hand harvesting must be paid every week within two days after the end of their work period unless their written contract states otherwise.

Employers may choose to pay an employee’s wages more frequently than state policies require.

The IWOWA requires that employees who work more than 40 hours in a workweek are compensated at a rate of 1.5 times their regular hourly wage for the additional hours.

Employers can also choose to offer compensatory time off instead of overtime pay if an employee is provided 10 days of paid leave annually. However, an employee must voluntarily agree to ‘comp time’ provisions in advance.

Compensatory time is accrued at 1.5 hours for each hour of overtime worked, with a maximum accrual limit of 240 hours.

Employers are prohibited from forcing employees to accept compensatory time in place of overtime pay.

White-collar salaried employees earning $844 weekly ($43,888 annually) are exempt from receiving overtime pay in Michigan. This includes executive, administrative, or professional employees.

Other occupations exempt from overtime pay are as follows:

• Employees working in amusement or recreational establishments that do not operate for more than 7 months annually
• Agricultural workers
• Public elective officers and political appointees
• Employees exempt from minimum wage in Michigan

Employees aged 18 and older are not entitled to mandatory meal and rest breaks in Michigan.

If an employer chooses to provide breaks, they must comply with federal regulations. Breaks lasting 30 minutes or more, where the employee is fully relieved of all duties, can be unpaid. However, breaks shorter than 20 minutes are required to be paid.

Under the Michigan Youth Employment Standards Act, employees aged under 18 cannot work more than five hours without a documented, uninterrupted 30-minute meal or rest break. Daily time records for minors must reflect starting and ending times for shifts, and scheduled break times.

Michigan labor laws adhere to the standards set by the FLSA for breastfeeding breaks. Additionally, the Michigan Department of Health and Human Services’ lactation room policy supports breastfeeding employees by requiring employers to provide reasonable break times for expressing milk in a private, secure location, shielded from view and free from intrusion.

Under state policy, breastfeeding employees are entitled to two to four breaks per eight-hour shift, lasting up to 30 minutes each, during the first 12 months, with possible continued access afterward.

The lactation space must include basic amenities like a chair, table, electrical outlet, and flat surface, with additional features such as a nearby sink, refrigerator, or peaceful decorations being optional.

Employees may also breastfeed or express milk in their private workspace or any other location agreed upon with their supervisor.

The following leave benefits are provided to employees in Michigan:

• Sick Leave: On July 31, 2024, the Michigan Supreme Court reinstated the Earned Sick Time Act of 2018, which will take effect again on February 21, 2025. The Act applies to all employers with one or more employees, excluding those employed by the U.S. Government, and covers both salaried and hourly workers. Employees can accrue one hour of sick for every 30 hours of work. Employers with 10 or more employees must provide at least 72 hours of paid sick leave annually, while those with less than 10 employees must offer at least 40 hours of paid sick leave with an additional 32 hours of unpaid sick leave. Any unused sick leave can be carried over to the next year, but annual usage may be capped at 72 hours. Additionally, employees can take legal action against employers who interfere with or retaliate against their use of these benefits.
• Family and Medical Leave: Employees in Michigan can apply for leave under the Family and Medical Leave Act if they are absent for five or more days from work due to major life events. These events can include caring for a newborn child, adopting or fostering a child, experiencing a health condition that prevents you from working, or caring for a family member with a serious health condition. To become eligible, an employee must have worked for the same employer for at least 12 months before the leave and have worked at least 1,250 hours in those 12 months.
• Jury Duty Leave: Employees have the right to take jury duty leave in Michigan. Employers cannot discipline or discharge employees who choose to fulfill this civic duty. Furthermore, without a written agreement, employers cannot require employees to work overtime on days they’re scheduled to report for jury duty. Violating these rules may result in charges of misdemeanor or even contempt of court.
• Emergency Response Leave: Michigan State employees classified as state-classified civil service members or certified American Red Cross volunteers may be granted unpaid emergency response leave in Michigan to aid in disaster relief. With certain conditions, these employees may receive paid emergency response leave of 10 days in 12 months to provide specialized disaster relief. This leave must be approved by their department head, the governor, or the Civil Service Commission. Employers can not retaliate against employees for taking emergency response leave.
• Military Leave: Employees in Michigan can take military leave to enter or serve in state or US armed forces. Employers can not reject an employee’s military leave if they provide prior notice. Employees must be re-employed if they contact their employer within 45 days of being discharged from a service period that lasted at least 90 days. For service periods lasting more than 180 days, employees can request job reinstatement within 90 days of being discharged from the military. Further conditions apply.
• Domestic Violence and Sexual Assault Leave: Under the reinstated Earned Sick Time Act, employees may take domestic violence leave if they or a family member are victims of domestic violence or sexual assault. This leave can be used for purposes including seeking care for physical or psychological injuries, obtaining victim support, relocation, securing legal assistance, or participating in court proceedings related to the incident.
• Bereavement Leave: In Michigan, private employers are not required to provide bereavement leave to their employees unless they choose to provide such benefits under specific policies. State workers, on the other hand, can take up to 8 hours of funeral leave for the memorial service of a parent, child, or spouse.
• Vacation and Holiday Leave: Only public sector employees are entitled to 15-35 days of paid vacation leave every year in Michigan. They can also receive up to 14 days of paid holidays annually.

 Here is a table of official holidays observed in Michigan in 2024:

In Michigan, there are specific laws governing child labor, known as the Youth Employment Standards Act (YESA), that apply to anyone under the age of 18, whether they are employees, independent contractors, or performing artists. To work, minors must obtain a work permit, agreement, or contract that has been signed by both their employer and the chief administrator of the school they attend. If they change jobs, they’ll need a new permit. It’s also possible for a permit to be revoked if the minor isn’t doing well academically. For their own safety, minors must be supervised by an adult while working, particularly in jobs that require handling cash, and this supervision is especially important after sunset or 8 p.m.  

There are different legal working hours for minors depending on their age. Minors under the age of 16 can work from 7 a.m. to 9 p.m. for no more than 10 hours a day and 6 days a week. While school is in session, they cannot work more than an average of 8 hours a day or 48 hours a week, and the combined total of school and work time cannot exceed 48 hours. For minors aged 16 and 17, they can work between 6 a.m. to 10:30 p.m. when school is in session, and until 11:30 p.m. when not in session. Similar restrictions on hours and days apply as those that apply to those minors under 16, but they have a greater range of working hours under certain circumstances.  

The YESA is responsible for regulating certain occupations that minors are prohibited from working in due to their hazardous nature. Some of these occupations include:

• Working in places where alcohol is being sold, served, or consumed
• Confined spaces such as silos, sewers or boiler rooms
• All construction operations
• Handling explosives
• Operating motor vehicles and power-driven machinery