Michigan Employment Law — full calculator

Frequently Asked Questions

• What are Michigan's overtime rules in 2026?

  Michigan requires employers to pay non-exempt employees 1.5 times their regular rate for all hours worked over 40 in a workweek under the Improved Workforce Opportunity Wage Act (IWOWA). There is no daily overtime threshold. Michigan's rule is broader than federal FLSA because it applies to employers with 2 or more employees, and the minimum wage base is $13.73/hr as of 2026.

• When must a Michigan employer issue a final paycheck?

  Under Michigan's Payment of Wages and Fringe Benefits Act (Act 390 of 1978), employers must pay all earned wages by the next regularly scheduled payday following separation — whether the employee was fired, laid off, or quit. Agricultural workers engaged in hand harvesting must be paid within 1 working day of termination. The federal FLSA sets no final-paycheck deadline.

• Are non-compete agreements enforceable in Michigan?

  Yes. Michigan MCL §445.774a explicitly allows non-compete agreements that protect an employer's reasonable competitive business interests, provided the restrictions are reasonable in duration, geographic area, and type of employment. Courts may blue-pencil (modify) unreasonable terms. There is no state ban and no mandatory salary threshold. The federal FLSA is entirely silent on non-competes.

• Does Michigan require meal or rest breaks for adult employees?

  No. Michigan has no state law requiring meal or rest breaks for employees age 18 and older. This follows the federal FLSA's silence on breaks for adult workers. Michigan's Youth Employment Standards Act (YESA) requires a 30-minute break for workers under 18 after 5 continuous hours, but adult workers have no mandated break right.

• What is Michigan's Earned Sick Time Act (ESTA) and how does accrual work?

  Michigan's Earned Sick Time Act (ESTA), effective February 21, 2025, requires employers to provide paid sick leave at 1 hour per 30 hours worked. Large employers (11 or more employees) may allow up to 72 hours of paid sick leave per year; small employers (10 or fewer employees) may cap usage at 40 hours per year. Unused sick time carries over annually up to the applicable cap. The federal FLSA mandates no paid sick leave.

• What is Michigan's minimum wage in 2026?

  Michigan's minimum wage is $13.73 per hour effective January 1, 2026 — nearly double the $7.25 federal FLSA floor. Tipped employees must receive at least $5.49/hr (40% of the minimum wage), provided tips bring total hourly pay to at least $13.73/hr. Youth workers aged 16–17 may be paid $11.67/hr (85% rate). The minimum wage is scheduled to increase to $15.00/hr on January 1, 2027.

• What penalty can a Michigan employer face for not paying final wages on time?

  Under Michigan Act 390, the Michigan Department of Labor & Economic Opportunity (LEO) may assess a civil penalty of up to $1,000 per violation against an employer who fails to pay final wages by the required deadline. Employees may also recover unpaid wages through a wage claim with LEO or a private civil lawsuit, and may be entitled to interest on withheld amounts.

• How does Michigan's minimum wage compare to the federal rate?

  Michigan's minimum wage of $13.73/hr (as of 2026) is $6.48 per hour above the $7.25 federal FLSA floor — nearly double. For a 40-hour workweek, this translates to a $259.20 weekly premium above the federal minimum. Michigan employers must pay the state rate; the federal floor only applies if Michigan's rate were to fall below it, which is not the case.

• Who enforces Michigan labor law and where can I file a complaint?

  The Michigan Department of Labor & Economic Opportunity (LEO), Wage and Hour Division enforces the IWOWA, Act 390, and the ESTA. You can file a wage claim or complaint at michigan.gov/leo. For federal FLSA violations, contact the U.S. Department of Labor's Wage and Hour Division at dol.gov/agencies/whd.