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.
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.
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.
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.
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.
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.
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.