Michigan businesses must abide by state and federal laws when it comes to matters such as paying employees, giving breaks to certain workers and closing down plants. These wage and hour laws are a vital part of protecting both the business and the employee. In order to maintain smooth operations and avoid an unnecessary lawsuit, business owners should be familiar with these laws.
Minimum Wage in Michigan
Effective Jan. 1, 2016, the minimum wage in Michigan is $8.50 an hour, which is higher than the federal rate of $7.25 per hour. There is a training wage of $4.25 per hour that must be paid to workers who are 16 to 19 years old during the first 90 days of their employment. Further, minors who are 16 to 17 years old may be paid 85 percent of the minimum wage, or $7.25 per hour. On Jan. 1, 2017, the minimum wage in Michigan will climb to $8.90 per hour, and on Jan. 1, 2018, the rate will be set at $9.25 per hour.
Minimum Wage of Tipped Workers: Michigan allows businesses to pay tipped workers $3.23 per hour, or 38 percent of the established minimum wage rate. However, if there is any shortfall in the hourly rate once tips are factored in, the employer must make up the difference.
Does Minimum Wage Apply to Me: Michigan minimum wage laws do not apply to federal, state and local government employees, unless their paid rate is less than Michigan’s rate. Further, people younger than 16, those employed in summer camps or certain employees with disabilities may be exempt from minimum wage.
These guidelines can be viewed at the Workforce Opportunity Wage Act.
When Are Raises Required: No laws demand that employers raise someone’s rate of pay. Instead, employee handbooks typically outline how raises may be given.
Work Hours in Michigan
Michigan law states that most workers may not be forced to work more than 40 hours a week without receiving overtime pay. Employees exempt from overtime include highly paid executives and professionals.
Paying Overtime: People who work more than 40 hours in a week must be paid one and one-half times their regular rate of pay for every hour worked over 40 hours. However, to be eligible, the worker must be at a business with two or more employees. Michigan law also states that employees can collect unpaid overtime up to three years after the pay was earned.
Guaranteed Breaks and Meals: Under Michigan law, workers younger than 18 must be given a 30-minute break if they work five or more consecutive hours. Outside of nursing mothers, there are no other required breaks or meal breaks for employees in Michigan.
Under the Patient Protection and Affordable Care Act, employers must provide a break to mothers who are nursing so they may pump for the first year after the child’s birth. These breaks must be provided in a space other than a bathroom.
Paid Time Off and Sick Pay: Currently, there is no state or federal law that requires employers to give workers in Michigan paid time off work for either recreational purposes or due to an illness. However, employers that have a policy in place that grants workers paid or unpaid time off must abide by that policy.
Notice Period for Employee Termination: As an at-will employment state, Michigan law notes that a worker could be fired at any time and for any reason, though there are several exceptions. There is no state or federal law that requires an employer to give the worker notice of the termination.
Plant Closings & Layoffs: Michigan abides by the federal Worker Adjustment and Retraining Notification Act. WARN applies to businesses that have at least 100 full-time workers or at least 100 workers who put in a combined 4,000 hours or more every week. Under the law, these businesses must give 60 days’ notice of a substantial layoff, or one that affects at least 33 percent of the workforce. Additionally, these businesses must give 60 days’ notice when they plan on closing a plant.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.