Michigan is one of the few states that requires employers to pay certain classes of employees at least once per week. According to the U.S. Department of Labor's website, the majority of other jurisdictions require employers to pay their employees at least once every two weeks.
Compensatory Time Rules
Under Michigan law, employers can pay compensatory time in lieu of overtime pay. Each employee must voluntarily consent to the compensatory time payment, in writing, before accruing compensatory time. If the employee agrees to compensatory time payment, then employees receive compensation time equal to 1.5 hours for each overtime hour worked.
The total compensatory time accrual cannot exceed 240 hours. After 240 hours, the employer must pay regular overtime to employees who work overtime. Employers must pay employees all accrued compensation time upon termination.
Overtime Compensation
Employers must pay their employees overtime compensation at 1.5 times their regular pay rate for hours exceeding 40 hours per workweek. Under the Fair Labor Standards Act, employers do not have to pay overtime compensation to exempt employees. Exempt employees include professional, executive, administrative, elected officials, seasonal amusement park employees, and agricultural employees.
Rest and Meal Breaks
Michigan does not require employers to provide meal or rest breaks for adult employees. Employers who hire minors under the age of 18 must provide at least 30 minutes of rest for every five hours worked.
Minimum Wage Law
As of 2009, Michigan employers must pay their employees at least $7.40 per hour or $7.25 hourly if covered by the state’s 85 Percent Rule. Tipped employees must receive at least $2.65 hourly so long as their tips plus hourly wage equals or exceeds the state’s minimum wage. Michigan allows employers to pay a special minimum wage rate of $4.25 hourly for employees age 16 to 19 for their first three months of employment.
Paycheck Deductions
Under Michigan law, Michigan employers cannot deduct any payments from an employee’s paycheck, unless the employee consents to the deduction in writing. Employers cannot require employees to make up differences in cash drawers, unless employees voluntarily consent to those reimbursements in writing without fear of discharge or without intimidation.
Employers may not withhold wages for disciplinary reasons and must pay employees compensation for all time worked, unless the employee agrees to the compensation time exception. Michigan employers may not use docking of pay as a disciplinary measure. Employees can file complaints with the Department of Energy, Labor & Economic Growth for unpaid wages within 12 months after the employer’s violation.
Last Paycheck
Upon termination from employment, employers must pay employees their last paycheck by their next regularly scheduled pay date when employees.
Training Time
Employers must pay for an employee’s training time if the employer requires the training or the training is directly related to the employer’s business.
Yongjin Kang - Yongjin graduated from Virginia Polytechnic and State University, Magna Cum Laude, with a Bachelor's Degree in psychology and history. She ...
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