(650) 332-8623Michigan Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)
Let’s dive deep into Michigan’s labor laws, with details on the important aspects of the state’s regulations on your employees.
What’s New in 2025?
Michigan Meals and Breaks
NoneFor Lunch Breaks
Michigan law doesn’t have specific laws for meals and breaks. However, under federal law, meal breaks are mandatory only for employees who work more than five hours daily.
The breaks should last at least 30 minutes at any point during the workday. As per state law, employers must provide “enough time to consume a meal.” Employees working on duty alone can skip meal breaks but will receive compensation for them.
30 MinutesMeal Break for Minor Employees
The law doesn’t require employers to offer rest breaks. However, those who choose to do so must compensate the workers for the rest time.
Michigan Leave and PTO
Employers in Michigan must provide their employees up to 12 weeks of unpaid, job-protected leave per year to cover different situations, such as childbirth, illness, and military family circumstances.
Beginning in February 2025, all Michigan employees will be eligible for paid sick leave. This means that sick leaves will no longer cover just full-time and non-exempt employees. Eligible employees can accrue up to 72 hours of sick leave each year from the previous 40 hours.
Employers in Michigan are not required to provide vacation leaves. However, they may follow their own established policies and provide them to qualified employees if they decide to.
The number of vacation leaves may also be capped by employers, provided employees are notified in writing.
The state doesn’t require employees to provide employees with voting leave, but they may do so if they wish.
Michigan law prohibits employers from firing or penalizing workers for engaging in military duties. They must also accommodate military leave in their employment agreements.
The law doesn’t require employers to compensate employees for time spent in jury summons. However, they cannot fire or penalize employees for performing their civic duty.
Employers cannot take action on an employee who is a crime victim and attends judicial proceedings related to the crime.
Employers cannot penalize employees for taking leave to respond to an emergency or serve their civil air patrol duties.
Michigan Wages and Overtime
$12.48 /hourMinimum Wage
1.5x HourlyOvertime Rate
Non-exempt employees in Michigan must be paid 1.5 times their regular pay rate if they work beyond the 40 hours in a workweek.
Tipped Minimum Wage$5.99 /hour
2x MonthlyPay Frequency
Salaried employees in Michigan are paid on a biweekly, semi-monthly, or monthly basis. Hourly employees can be paid at least every two weeks.
Local Minimum Wages in Michigan
After the Michigan Supreme Court’s ruling, the minimum wage will increase by more than $2 on February 21, 2025, from $10.33 per hour to $12.48 per hour.
However, Michigan cities and municipalities do not have their own separate local minimum wage standards.
In 2025, the minimum wage for minor employees aged 16 and 17 years old is $8.78 per hour.
Meanwhile, the training wage newly hired minor employees aged 16 to 19 for the first 90 days is $4.25 per hour.
Michigan has specific exemptions to its minimum wage laws, which include:
- Learners or apprentices in certain industries
- Freelancers and independent contractors
- Farm workers and agricultural employees
- Employees with disabilities under a special minimum wage certificate authorized by the state of Michigan or the federal government
- Exempt employees under the Fair Labor Standards Act (FLSA) such as professionals, administrators, and executives
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MI Prevailing Wages
$15.54 /hourLandscape Laborer
Commercial prevailing wage rates for inexperienced landscape laborers working less than 90 calendar days is $15.54 per hour.
$96.72 /hourElevator Constructor Mechanic
In Michigan, the commercial prevailing wage rates for an elevator constructor mechanic is $96.72 per hour.
As per Michigan law, all state-financed, construction-related contractors and subcontractors for projects greater than $50,000 must pay a prevailing wage.
Employers must also pay fringe benefits in addition to the prevailing wage.
Other regulations for prevailing wages in Michigan include:
- Failing to comply with prevailing wage regulations may result in contract termination.
- Employers must pay mechanics and laborers for state-funded projects at least weekly.
- The contractor will post the scale of wages at an open and easily accessible location.
Prevailing wages for individual counties are established after the submission and review of wages from bona fide employer and employee organizations.
Michigan Prevailing Wage Resources
- State of Michigan Prevailing Wage
- Statewide County Commercial Prevailing Wage Rates (State of Michigan)
Michigan Child Labor Laws
14 to 15 Years Old
Laws in Michigan for Children 14 to 15 Years Old
Minors may not work during school hours while school is in session, and 14- and 15-year-olds may not work before 7 a.m. or after 9 p.m. Their combined school and work hours cannot exceed 48 hours in a workweek.
Minor employees in Michigan must also have a 30-minute break if working for five or more continuous hours. Short rest breaks are encouraged to promote the minors’ health and safety.
16 to 17 Years Old
Laws in Michigan for Children 16 to 17 Years Old
Minors 16 and 17 years old may work 24 hours per week when school is in session and 48 hours per week when school is not in session.
Approval may be granted for 16- and 17-year-olds to work beyond the starting and ending times specified in the Youth Employment Standards Act. Approvals can be obtained online from the Wage and Hour Division.
Other Essential Michigan Labor Laws
Health and Safety Standards in Michigan
Michigan is keen on ensuring a safe and conducive workplace for all employees. Under the Michigan Occupational Safety and Health Administration (MIOSHA), working environments must not compromise the worker’s health or safety.
In Michigan, employers must…
- Provide the necessary safety and hazard training as required by OSHA
- Inform employees on how to report on-the-job incidents and injuries
- Report all work-related hospitalizations, eye loss incidents, and amputations within 24 hours
- Maintain records of deaths, injuries, and illnesses and make them available to employees
In Michigan, employees should…
- Comply with regulations and standards covered under MIOSHA.
- Not damage, move, or remove any safety-related item provided for use at a place of employment; or do anything that would interfere with the use of that item by another person.
Report health and safety violations (unsafe working conditions) in Michigan to…
Hiring/Firing Employees in Michigan
Michigan is an at-will state. This means employees can quit their jobs as they please, and employers can fire employees as they wish, provided they don’t contravene discrimination laws.
As an at-will state, Michigan doesn’t require employees to give their employers notice of resignation. The same goes for employers when terminating employees. However, doing so is considered courteous and allows each party to prepare adequately for the change in circumstances.
Since the repeal took effect on February 13, 2024, Michigan is no longer governed by a “right-to-work” law, which means employees can be required to join a union to keep their jobs.
The state will hold employers liable for knowingly hiring unfit employees. Therefore, employers must exercise reasonable care during hiring to ensure only qualified and responsible candidates get the job.
Essentially, employers must conduct comprehensive background checks, especially for positions that pose a risk to public safety. The state will hold you accountable when your employee harms the public or destroys private property.
There is no statute in Michigan requiring workplace drug testing for private companies. As such, employers can conduct drug tests as they wish, provided they don’t breach any discrimination laws.
This means employers can conduct drug tests as a condition for employment during the job application stage. After hiring, employers can conduct up to six unscheduled drug and alcohol tests annually. You can run into legal trouble if your drug tests:
- Discriminate against employees taking specific medication for their ailments or disabilities;
- Single out a particular group of employees based on race, gender, or age;
- Go against an employee’s right to privacy; or
- If you publish a false positive result that defames an employee
Michigan has Equal Employment Opportunity (EEO) protections that are both federally mandated and reinforced by state-specific laws.
Anti-Discrimination Laws in Michigan
Employers in Michigan may not discriminate against job applicants based on…
- Race
- Color
- Age
- Sex
- Sexual orientation
- Gender
- Gender identity
- Religion
- National origin
- Pregnancy
- Genetic information, including family medical history, physical or mental disability
- Child or spousal support withholding
- Mlitary or veteran status
- Citizenship and/or immigration status
Employee Resignation or Termination in Michigan
Wrongful termination refers to the unlawful dismissal of employees against labor laws and employment agreements. In Michigan, the following might count as wrongful termination:
- Terminating employees based on race, gender, nationality, and similar factors
- When terminating an employee is a breach of a signed employment contract
- Terminating employees as retaliation for reporting workplace violations or unethical work practices
- When society could consider the dismissal unjust or unfair as per “public policy”
While employers in Michigan are not required to give a reason for termination in most situations, providing clear communication about the reasons for the decision can help prevent misunderstandings and potential legal disputes. Additionally, employers should be cautious about providing false reasons for termination, as this could lead to legal challenges.
It’s worth noting that terminated employees are entitled to their final paychecks in the next pay period. The final paycheck should include all unpaid work hours, including bonuses, commissions, and fringe benefits under the employment agreement.
Employers in Michigan don’t have to provide severance pay. However, employees can negotiate for it under their employment agreement. For instance, employees can request their health benefits for a given period despite their unemployed status.
Unemployment Benefits in Michigan
Workers in Michigan are eligible for unemployment benefits if they…
- Are unemployed from no fault of your own;
- Are mentally and physically capable of working;
- Are actively seeking employment with sufficient proof;
- Have earned a minimum of $3,919 in one quarter; and
- Have earned wages in at least two calendar quarters
Use this website to start your application for unemployment benefits in Michigan:
COBRA Benefits in Michigan
Separated employees in Michigan may extend employer-provided health care coverage through COBRA, which stipulates…
- Eligibility for employees and their families after job loss, hour reduction, or other qualifying events.
- Duration of 18, 29, or 36 months, depending on the qualifying event.
- Full cost of premiums + a 2% administrative fee
- Employers must notify beneficiaries, and there is a 60-day election window.
- Coverage can end early for non-payment, new health coverage, or other reasons.
Final Paychecks in Michigan
Separated employees in Michigan must receive their final paychecks…
Michigan state law requires employers to pay final wages to employees who were fired, laid off, or who quit by the next regularly scheduled payday. However, there is no statute stipulating when payments must be paid to employees who quit due to labor disputes.
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Michigan Recordkeeping Requirements
Michigan’s record-keeping laws requires employers to keep employment and payroll records.
1 Year
Employers must retain these documents for at least one year:
- All employment records
2 Years
Employers must retain these documents for at least two years:
Employment and earning records, such as:
- Timecards
- Wage-rate tables
- Shipping and billing records
- Wage addition/deduction records
3 Years
Employers must retain these documents for at least three years:
- Payroll records
- Agreements
- Notices
- Certificates
- Employment contracts
- Copies of completed I-9s
- Sales and purchase records
5 Years
Employers must retain these documents for at least five years:
- Job-related injuries and illnesses
Penalties for Labor Law Noncompliance in Michigan Wages
Up to $1,000Wage Violations
The exact penalties can vary based on the nature of the violation and whether it falls under state or federal law. Repeated and willful violations typically result in more severe penalties.
Employers may be required to pay unpaid wages and liquidated damages. Civil penalties can also be imposed on employers who repeatedly violate wage laws.
Up to $1,100Wage Violations
In more serious cases, employers who violate the Fair Labor Standards Act (FLSA) may face additional fines, such as a civil penalty of up to $1,100 per violation for each instance of wage theft or failure to comply with minimum wage and overtime rules.
Up to $1,100Break Violations
There are no specific state penalties in Michigan for break violations for adults. But under federal law (FLSA), break violations related to unpaid rest breaks may result in penalties, including back pay, liquidated damages, and fines.
Violators may face additional civil penalties and fines of up to $1,100 per violation.
In Michigan, labor law violations are investigated and addressed by…
Further Details on Other Michigan Labor Laws
While we’ve covered quite a bit of Michigan’s labor laws, a little extra knowledge could go a long way toward ensuring 100% compliance. Here are a few other nuggets of information concerning labor laws in Michigan:
- Smoking is illegal in public spaces, including places of work.
- Employers have the legal right to restrict the carrying of concealed weapons in the workplace.
- Michigan law under the Elliott-Larsen Civil Rights Act (ELCRA) protects employees from sexual harassment. Sexual harassment may include asking for sexual favors for employment perks. It also includes sexually inappropriate behavior (verbal, physical, non-verbal) towards employees.
- Employers must provide reasonable accommodations for pregnant employees and childbirth-related conditions per the Pregnant Workers Fairness Act.
The Bottom Line on Michigan Labor Laws
The Wolverine State is committed to ensuring a fair and equitable business environment for employees and employers. Although some penalties might seem harsh and heavy-handed, they ultimately work for the best.
Remember, employers can’t plead ignorance if they violate these labor laws. As such, it is their responsibility to ensure they remain up-to-date with the latest employment regulations. Failure to do so could result in fines, jail terms, compulsory training, and other penalties.
For many businesses, the only real solution to compliance challenges is great software. The right business management software tends to come with built-in compliance and recordkeeping rules, regardless of your industry, how many employees you have, what they do, or how widely they’re dispersed across the state (or country).
That’s where software like Workyard helps. This powerful tool automates time tracking, ensures accurate job cost reporting, and simplifies payroll management. More importantly, it helps your business maintain compliance without the stress.
Workyard ensures every hour worked by your employees is accurately recorded so you can avoid common labor law mistakes. Investing in software like Workyard not only promotes transparency and fairness in your workplace. It also protects your business from incurring penalties and fines.
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Workyard helps you stay compliant with labor laws. Find out about specific state labor laws that apply to employees hours and payroll records:
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In 2025, Michigan’s minimum wage will see two significant increases:
- Effective January 1, 2025: The minimum wage will rise from $10.33 to $10.56 per hour.
- Effective February 21, 2025: The wage will increase substantially to $12.48 per hour.
Additionally, the minimum wage for tipped employees will increase from $3.93 to $4.01 on January 1 and then to $5.99** on February 21, 2025.
This increase is part of a series of scheduled hikes that will ultimately raise the minimum wage to nearly $15 by 2028, with future adjustments tied to inflation starting in 2029.
Michigan is classified as an at-will employment state. This means that, generally, employers in Michigan can terminate employees for almost any reason as long as it does not violate specific legal protections.
Conversely, employees also have the right to leave their jobs at any time and for any reason.
Key Features of At-Will Employment in Michigan
Termination Rights: Employers can fire employees without prior notice and for any lawful reason, while employees can resign without providing a reason.
Exceptions: There are notable exceptions to this at-will doctrine:
- Discrimination: Employers cannot terminate employees based on protected characteristics such as race, gender, age, or disability.
- Retaliation: Employees who report illegal activities or unsafe working conditions are protected from retaliatory termination.
- Public Policy: Employees cannot be fired for refusing to engage in illegal activities or for exercising rights protected by law.
- Contracts: If an employee has a written or oral contract that specifies terms of employment, this may override the at-will status. For instance, if a contract guarantees employment for a specific duration, the employer cannot terminate the employee before that period ends without cause.
Legal Protections Against Wrongful Termination
Despite the at-will status, Michigan law provides several protections against wrongful termination. Employees who believe they have been unlawfully terminated can file complaints with state agencies like the Michigan Department of Civil Rights or pursue legal action.
While Michigan’s at-will employment framework provides flexibility for both employers and employees, it is crucial to be aware of the exceptions and legal protections that safeguard against wrongful termination.
Yes, overtime pay is mandatory in Michigan for non-exempt employees. Under Michigan law, specifically the Workforce Opportunity Wage Act, employers are required to pay non-exempt employees at a rate of 1.5 times their regular hourly wage for all hours worked over 40 hours in a workweek.
Certain categories of employees are classified as exempt from overtime pay under both Michigan law and the federal Fair Labor Standards Act (FLSA). These include:
Executive, Administrative, and Professional Employees: Typically salaried employees who perform managerial or specialized tasks. To qualify for exemption, they must meet specific salary thresholds and job duties.
Outside Salespersons: Employees engaged primarily in sales outside of the employer’s place of business.
Certain Agricultural Workers: Some agricultural employees may be exempt based on their job duties and work conditions.
Seasonal Workers: Employees working in seasonal establishments may also fall under this exemption.
