Michigan Overtime Calculator — 2026

Frequently Asked Questions

• What is Michigan's overtime law in 2026?

  Michigan's Improved Workforce Opportunity Wage Act (IWOWA) requires employers to pay non-exempt employees 1.5 times their regular hourly rate for all hours worked beyond 40 in a single workweek. This is a weekly threshold only — Michigan has no daily overtime rule unlike states such as California or Nevada.

• Does Michigan have daily overtime like California?

  No. Michigan uses only a weekly threshold of 40 hours. Working more than 8 hours on a single day does not trigger overtime unless the total hours in the workweek exceed 40. California and Nevada are among the few states with daily overtime rules; Michigan is not one of them.

• What employers must pay Michigan overtime?

  Michigan's IWOWA applies to employers with 2 or more employees. This is a broader standard than federal FLSA, which typically requires interstate commerce engagement or $500,000 in annual revenue. Many small local businesses covered by Michigan IWOWA would not be covered by federal FLSA.

• What is the Michigan overtime rate in 2026?

  The overtime rate is 1.5 times (150%) the employee's regular rate of pay for all hours over 40 in a workweek. Michigan does not have a double-time (2×) rule for any category of worker. At Michigan's $13.73/hr minimum wage (as of 2026), the minimum overtime rate is $20.60/hr.

• Can my Michigan employer average hours over multiple weeks to avoid overtime?

  No. Michigan overtime is calculated on a single workweek basis — a fixed, recurring 7-day period. Employers may not average hours across two or more weeks to escape the 40-hour threshold. If you worked 50 hours one week and 30 the next, you are owed overtime for the first week despite the average being 40 hours.

• Are salaried employees exempt from Michigan overtime?

  Not automatically. To qualify as exempt (executive, administrative, professional), salaried employees must meet both a salary basis test (currently $684/week, matching the federal FLSA threshold) and a duties test. Simply receiving a salary does not make an employee exempt from Michigan overtime requirements.

• How does Michigan's minimum wage affect overtime pay?

  Michigan's minimum wage of $13.73/hr (as of January 1, 2026) serves as the base for overtime calculations. Workers paid at minimum wage earn an overtime rate of $13.73 × 1.5 = $20.60/hr. This is significantly higher than the federal floor: at $7.25/hr, the federal OT rate is just $10.88/hr — a $9.72/hr difference at minimum wage.

• How is overtime calculated for tipped employees in Michigan?

  For tipped employees who receive the tipped minimum wage ($5.49/hr as of 2026), overtime must be calculated on the full minimum wage ($13.73/hr), not the tipped rate. The employer may then apply the tip credit to each overtime hour. Overtime pay must be 1.5× the full minimum wage minus the applicable tip credit.

• What is the statute of limitations for unpaid overtime in Michigan?

  Under the Michigan Payment of Wages and Fringe Benefits Act, the general statute of limitations for wage claims (including unpaid overtime) is 3 years. Federal FLSA provides 2 years for non-willful violations and 3 years for willful violations. Filing promptly preserves your rights under both state and federal law.

• How do I file an overtime complaint in Michigan?

  You can file a wage claim with the Michigan Department of Labor & Economic Opportunity (LEO), Wage and Hour Division at michigan.gov/leo. Alternatively, file a complaint with the U.S. DOL Wage and Hour Division under federal FLSA, or pursue a private civil lawsuit in Michigan circuit court. Michigan LEO may assess civil penalties against non-compliant employers.