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 are not required to provide paid or unpaid sick leave but must comply with their own established policies if they choose to implement one. 
  • 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.
  • 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 
  • Bereavement Leave: Employers are not required to provide bereavement 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 $9.25.
  • In the next few years, the wage will increase as follows: 
    • January 1, 2020: $9.65
    • 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 $3.59. 
  • In the next few years, the wage will increase as follows:
    • January 1, 2020: $3.67
    • 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

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. 

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. 
  • Employers are required to pay employees an overtime rate of 1 ½ time their regular pay when they work more than 40 hours in a workweek, unless otherwise exempt. 

Employment Discrimination

  • Michigan state law prohibits employers from discriminating against someone for their race, color, national origin, religion, sex, disability, age, genetic information, marital status, AIDS/HIV, height or weight, and misdemeanor arrest record. 
  • 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. 

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.

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