State Labor Law Guide

Michigan
Labor Laws

What workers in Michigan need to know about minimum wage, overtime, earned sick time, final pay, and their rights when an employer has not paid them fairly.

MI MICHIGAN
$13.73
Minimum Wage
$20.60
Overtime Rate
72 HRS
Sick Time*
2-3 Years
Wage Claim
MI Law
Governing Law

Minimum Wage $13.73 PER HOUR

As of January 1, 2026, Michigan's minimum wage is $13.73 per hour. The rate is higher than the federal minimum wage and is scheduled to continue increasing under Michigan's wage law.

Michigan allows a tip credit, but tipped employees must receive a direct cash wage of at least $5.49 per hour in 2026. The worker's cash wage plus tips must equal at least $13.73 per hour. If tips do not cover the difference, the employer must make up the shortfall.

Tipped Workers: Michigan's tipped wage is scheduled to rise over time as a percentage of the full minimum wage, so restaurant, bar, hotel, delivery, and service workers should check each year's rate.

Overtime Laws 1.5X RATE

Michigan has its own minimum wage and overtime law. Most covered, non-exempt employees must receive one and a half times their regular rate for hours worked over 40 in a workweek.

At Michigan's $13.73 minimum wage, the overtime rate is $20.60 per hour. Overtime is calculated by workweek, not by day. Bonuses, commissions, shift differentials, and other pay may need to be included when calculating the regular rate.

Exempt Employees: A salary does not automatically remove overtime rights. Exempt status depends on pay, duties, and the actual work performed, not job title alone.

Earned Sick Time 1 HOUR PER 30

Michigan's Earned Sick Time Act gives many workers paid sick time rights. Covered employees generally accrue at least one hour of earned sick time for every 30 hours worked.

For many employers, annual use may be capped at 72 hours unless the employer allows more. Small-business rules may differ, including lower annual use limits. Earned sick time may be used for the worker's own health needs, certain family care needs, domestic violence or sexual assault-related reasons, and certain public health closures.

Retaliation: Employers cannot punish workers for requesting, using, or attempting to use protected earned sick time.

Meal & Rest Breaks MINOR BREAK RULE

Michigan does not generally require meal or rest breaks for adult employees. Break rights may still come from an employment agreement, collective bargaining agreement, workplace policy, or industry-specific rule.

Michigan does require breaks for minors. A minor cannot be employed for more than five continuous hours without at least a 30-minute uninterrupted meal and rest period.

Working Lunches: If an adult employee must keep working, answer calls, help customers, watch equipment, or remain on duty during a meal period, that time may need to be paid.

Final Paycheck NEXT PAYDAY

When a Michigan employee quits or is discharged, earned wages generally must be paid on the next regularly scheduled payday for the pay period in which the employment ended.

Michigan's Payment of Wages and Fringe Benefits Act can also cover fringe benefits owed under a written contract or written policy, such as vacation pay, holiday pay, sick time, bonuses, or authorized expenses.

Final Pay: Policies, offer letters, handbooks, paystubs, commission plans, and written agreements can matter when deciding what was earned and when it was due.

Filing a Claim 2-3 YEAR WINDOW

Michigan workers may file minimum wage, overtime, and earned sick time complaints with the Michigan Wage and Hour Division. State minimum wage, overtime, and earned sick time complaints generally must be filed within three years.

Unpaid wage and fringe benefit complaints can have a shorter administrative filing period. Federal FLSA claims generally have a two-year limitations period, extended to three years for willful violations.

Important: The deadline can depend on whether the claim is for minimum wage, overtime, earned sick time, unpaid wages, fringe benefits, or federal FLSA violations.

Michigan Wage Remedies STATE RIGHTS

Michigan gives workers state-law wage protections in addition to federal FLSA rights. Depending on the claim, workers may be able to recover unpaid minimum wages, unpaid overtime, unpaid fringe benefits, earned sick time remedies, or other wages owed.

Michigan also prohibits retaliation for exercising certain wage-and-hour rights. Workers should keep records of complaints, paystubs, schedules, time records, texts, and emails showing what was worked and what was paid.

Employee Misclassification COMMON VIOLATION

Some Michigan employers label workers as independent contractors or exempt employees to avoid paying overtime, payroll taxes, earned sick time, or other wage obligations. A job title, contract, 1099 form, or salary does not automatically decide whether wage protections apply.

The actual working relationship, economic realities, and day-to-day duties matter. Workers who were wrongly classified may be able to recover unpaid overtime and other wages under state or federal law.

This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.

Think You May Be Owed Back Wages?

Josephson Dunlap reviews wage claims for Michigan workers at no cost. There is no fee unless wages are recovered. A case manager will go through your situation and tell you where you stand.