It’s important to stay up to date on all of the employment laws in your state so that you can maintain compliance in your business. We did some of the hard work for you and put some of the most important Michigan statutes in one place so you can either learn them for the first time or give yourself a refresher. 

However, remember that our summary is not qualified legal advice, laws are always subject to change, and they can vary from municipality to municipality. 

It’s up to you to make sure you’re compliant with all laws and statutes in your area. Consult with a qualified lawyer and/or your local government agencies if you have questions or concerns. 

Here are a few Michigan labor laws every small business owner should know.

Resources

First, here are a few helpful links and resources for you to bookmark and refer back to:

Leave

  • Sick Days: Employers with 50 or more employees must allow employees to accrue one hour of paid sick leave for every 35 hours worked, but do not need to be granted more than one hour per week of work. 
    • Employees may accrue and use up to 40 hours per benefit year (which may be any consecutive 12-month period).
    • Employees are eligible to use leave on their 90th day of employment.
    • Yearly usage may be capped at 40 hours. Employers must allow employees to use sick leave in increments as small as one hour, unless they have a policy designating a longer increment.
  • Medical Leave: Employers may be required to provide an employee unpaid medical leave in accordance with the Family and Medical Leave Act or other federal laws.
    •  Employers with 50 or more employees must provide 1 hour of paid sick leave for every 35 hours worked, up to 40 hours per year.
  • Vacation Leave: Employers are not required to provide vacation leave but must comply with their own established policies if they choose to implement one. 
    • Employers may establish a policy denying payment of accrued vacation upon separation from employment as long as there is a signed contract.
    • If there is a policy in place that says vacation time will be paid out upon separation of employment, it must be followed.  
    • Employers may establish a policy disqualifying employees from receiving payment for accrued vacation upon separation from employment if they fail to comply with certain requirements. 
    • The amount of vacation time an employee can accrue may be capped by the employer as long as the employee has been notified in writing. 
    • Employers can implement a “use-it-or-lose-it” policy that requires employees to use their vacation time by a set date, as long as employees have been informed in writing. 
  • Jury Duty: Employers do not have to pay employees for time spent responding to a jury summons, but employees cannot be terminated or otherwise penalized for doing so. 
    • Employers may not require employees to work without their consent any number of hours during a day that, when combined with the number of hours the employee spent responding to the jury summons, exceeds the number of hours in a normal shift. 
    • The employee cannot be required to work past their normal quitting time. 
  • Holiday Leave: Private employers are not required to provide paid or unpaid time off for holidays. 
  • Voting Leave:  No statute 
  • Crime Victim Leave: Employers cannot take any adverse action against an employee who is a crime victim (or their representative) and testifies in a criminal proceeding.
  • Emergency Response Leave: Employers may not discriminate against, discipline, or discharge an employee because they are a member of the civil air patrol or are absent from work to respond to an emergency. The employer can require that the employee provide as much notice as possible of their need for leave as a member of the civil air patrol.
  • Bereavement Leave: Employers are not required to provide bereavement leave. 
  • Military Leave: Employers may not discharge or discriminate against an employee because they are a member of the armed forces or engage in military duties. They must also allow their employees to take military leave.

Final Paycheck

  • Employees who were fired, laid off or who quit must be paid all final wages by the next regularly scheduled payday. 
  • There is no statute specifically stipulating when employers must pay employees who quit due to a labor dispute. 

Minimum Wage

  • The current minimum wage in Michigan is $9.65.
  • In the next few years, the wage will increase as follows: 
    • January 1, 2021: $9.87
    • January 1, 2022: $10.10
    • January 1, 2023: $10.33
    • January 1, 2024: $10.56
    • January 1, 2025: $10.80
    • January 1, 2026: $11.04
    • January 1, 2027: $11.29
    • January 1, 2028: $11.54
    • January 1, 2029: $11.79
    • January 1, 2030: $12.05

Tipped Wages

  • The current minimum wage for tipped employees is $3.67. 
  • In the next few years, the wage will increase as follows:
    • January 1, 2021: $3.75
    • January 1, 2022: $3.84
    • January 1, 2023: $3.93
    • January 1, 2024: $4.01
    • January 1, 2025: $4.10
    • January 1, 2026: $4.20
    • January 1, 2027: $4.29
    • January 1, 2028: $4.39
    • January 1, 2029: $4.48
    • January 1, 2030: $4.58

Pay Practices

  • Employers must pay their employees at least weekly, biweekly, or monthly on regular paydays. Employers in agriculture must pay their employees who harvest crops by hand at least weekly.
  • Employees who are paid weekly or biweekly must be paid within 14 days of the end of the pay period. Employees who are paid monthly must be paid by the first day of the month for wages earned the previous month.
  • Employees who harvest crops by hand must be paid within two days of the end of the pay period, unless the employer and employee agree in writing to a different arrangement.

Child Labor

  • Minors under the age of 16 are subject to the following time restrictions
    • A maximum of 8 hours per day and 48 hours of combined work and school hours per week during a school week. 
    • Work must not start earlier than 3 p.m. Monday through Friday 
    • Work is prohibited between the hours of 9 p.m. and 7 a.m.
  • Minors 16 and 17 years of age are subject to the following time restrictions:
    • When school is not in session, 10 hours a day, 6 days a week and 48 hours per week are permitted.
    • Up to 24 hours of work per week is permitted when school is in session.
    • Work is prohibited during the hours of 10:30 p.m. to 6 a.m. when school is in session and 11:30 p.m. to 6 a.m. on the weekends and when school is not in session. 

Hiring

  • Background Checks: Employers who run background checks should ensure they’re following the requirements of the Fair Credit Reporting Act, which are available here.
  • Arrest and Conviction Checks: Employers are prohibited from asking applicants about misdemeanor arrests that did not lead to conviction. Employers may ask about conviction records.
  • Mandatory Background Checks: Michigan requires that employers conduct background checks on the following types of employees or applicants:
    • School bus drivers
    • Certain school personnel, including teachers
    • Those working in a nursing home, county medical care facilities, or homes for the aged if the applicant has lived in the state for less than three years
    • Those working for a private security business

Meal and Rest Breaks, Overtime

  • Employers are required to give minor employees a 30-minute rest period if they work more than 5 consecutive hours. 
  • Employers are not required to provide breaks to adult employers, but must completely relieve employees of their duties if they choose to provide unpaid breaks. 
  • The federal overtime rule stipulates that the minimum salary requirement for administrative, professional, and executive exemptions is $684 per week, or $35,568 per year.
  • Non-exempt employees must be paid an overtime rate of 1 ½ times the regular rate of pay for hours worked in excess of 40 in one workweek.

Required Posters

The State of Michigan requires that employers post the following notices in a prominent location:

  • Michigan Safety and Health Protection on the Job
  • MIOSHA Log 300 Forms (annual summary of injuries and illnesses)
  • SDS Location Poster and SDS New & Revised Poster (employers that have hazardous chemicals)
  • Michigan Whistleblowers Protection Act
  • Minimum Wage and Overtime (WHD 9904)
  • Michigan Discrimination Law
  • Youth Employment
  • Michigan Employment Security Act Notice to Employees (regarding unemployment compensation)

Employment Discrimination

  • Federal law makes it illegal for an employer to discriminate on the basis of:
    • 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
    • Military or veteran status
    • Citizenship and/or immigration status
  • Additionally, the state of Michigan prohibits discrimination based on the following:
    • Use of lawful consumable products off the premises and outside of work hours
    • Non-conviction criminal records
    • Height or weight
    • Marital status
    • AIDS/HIV
    • Wage garnishment for consumer debt
  • Click here to read our blog on what acceptable and unacceptable questions to ask during an interview.       

Termination

Michigan is an employment-at-will state, which means that without a written employee contract, employees can be terminated for any reason at any time, provided that the reason is not discriminatory and that the employer is not retaliating against the employee for a rightful action. 

Whistleblower Protection

Employers may not discharge or discriminate against an employee for reporting an alleged violation of the law to a public body.

COBRA

  • COBRA is a federal law that allows many employees to continue their health insurance benefits after their employment ends. Because federal COBRA only applies to employers that have 20 or more employees, many states have adopted their own versions of the law, which are known as “mini-COBRAs.”
  • Michigan does not have a mini-COBRA.

Shift Scheduling

  • Schedules not maintained on a regular basis or fixed rotation shall be posted at least 14 calendar days prior to the beginning of the workweek. 
  • Employers are not allowed to change an employee’s work schedule unless they have notified the employee of the change 96 hours in advance of the workweek. 
    • If the employer does not give 96 hours notice, employees must be paid overtime for the hours worked on the first shift of the changed schedule. 
  • If a permanent change is made to a pre-established schedule, employees must be given off for a minimum of two shifts or be paid overtime for the hours worked on the first shift of the changed schedule.

Miscellaneous Laws

Social Media

An employer may not do the following:

  1. Request an employee or an applicant for employment to grant access to, allow observation of, or disclose information that allows access to or observation of the employee’s or applicant’s personal internet account.
  2. Discharge, discipline, fail to hire, or otherwise penalize an employee or applicant for employment for failure to grant access to, allow observation of, or disclose information that allows access to or observation of the employee’s or applicant’s personal internet account.

Telephone Monitoring

  • Michigan is an “all parties” consent state, meaning every person on a phone call must be aware that they are being monitored or recorded and have consented by placing or continuing the phone call.
  • This means employers may monitor or record phone calls between their own employees only if each employee has been given notice that phone calls may be monitored or recorded.
  • However, phone calls placed by employees to outside parties may not be monitored or recorded unless the outside party has also consented.

One Response to “Michigan Employment Laws Business Owners Should Know”

  1. What if I worked for a friend, and we agreed on $20 an hour, I worked 13 hours but was told he will not pay me after I worked? I was just helping him because his brother who usually works with him hurt his back.

    Reply

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>