Michigan Wage and Hour Laws

Michigan wage and hour rules help protect workers, set basic pay standards, and outline what employers must do to remain compliant. These rules come from both state and federal law, including the Fair Labor Standards Act (FLSA). Together, they guide how Michigan employers pay wages, schedule work hours, and treat minors. For Michigan workers, familiarity with these rules can help you identify potential violations and the various ways you might address them.

In this article, we review Michigan’s main wage and hour protections for employees as well as important principles to help you understand this tricky legal landscape. We’ll also provide you with key information to keep in mind when dealing with employers.

If you suspect you’re not being paid or treated fairly, you have a few options. An employment attorney who’s licensed in Michigan can help you understand them and determine the best way forward.

In the meantime, let’s start by taking a look at minimum wage laws.

Improved Workforce Opportunity Wage Act (IWOWA)

IWOWA is Michigan’s law that sets the minimum hourly wage for most employees who work in the state. It also defines eligibility for the state minimum wage and establishes rules for its increases. It doesn’t cover non-employees like independent contractors, interns, and volunteers.

In general, IWOWA covers employees who qualify as both of the following:

• Are at least 16 years of age
• Work in Michigan for an employer with at least two employees

Unless an exemption or special rule applies, these employees are entitled to the state minimum wage of $13.73 per hour (effective January 1, 2026). Let’s take a look at some of the rules that might prevent an employee from earning this hourly wage.

14(c) Exemption

Michigan’s IWOWA has a narrow exemption for employees with a federal 14(c) disability certificate. These are workers with disabilities that measurably limit their productivity in that specific job compared to a worker without a disability.

While IWOWA’s other wage protections may apply to these employees, they aren’t entitled to the minimum wage protection. This means employers may pay these employees a subminimum rate of pay based on their productivity.

Tipped Employees

While tipped employees who meet the above criteria are fully covered by IWOWA, they are subject to a special wage rule. Employers may pay them a lower minimum wage as long as tips bring their total hourly earnings up to at least the full Michigan minimum wage. If they don’t, the employer must make up the difference. Michigan’s tipped minimum wage stands at $5.49 per hour for the 2026 calendar year.

Employees Aged 16–17

Michigan has a special reduced-rate rule for employees who are 16 or 17 years old. If they meet the other requirements, these employees are covered by IWOWA. Employers may pay them the youth minimum wage rate equal to 85% of the regular minimum wage.

Federal Minimum Wage (FLSA)

The FLSA also sets a federal minimum wage. At $7.25 per hour, it hasn’t changed since 2009.

Depending on whether IWOWA or FLSA covers an employee, they may be entitled to the state or federal minimum wage. If both do, they get the higher of the two.

Like IWOWA, the FLSA only applies to employees. Nearly all U.S. employees are covered by this federal law unless an exemption applies. There are several exemption categories under the FLSA. Most notably:

• Executive, administrative, and professional employees (white-collar exemption)
• Certain farmworkers
• Casual babysitters

The FLSA also has special rules allowing employers to pay less than the regular minimum wage for certain employees. Examples include 14c employees and full-time students.

The FLSA also allows employers to pay certain younger employees a reduced training wage. These employees are still entitled to the state’s minimum wage if they’re covered by IWOWA.

Overtime Laws

Under both Michigan law and the FLSA, most employees must receive overtime pay for hours worked beyond 40 in a workweek. Overtime is paid at one‑and‑a‑half times the worker’s regular rate.

Several categories of employees in Michigan are exempt from overtime rules, including:

• Executive, administrative, and professional employees
• Taxicab drivers
• Certain police and firefighters
• Local delivery drivers paid on a trip‑rate basis
• Certain domestic service workers
• Employees of motion picture theaters
• Most agricultural workers (who perform typical farm labor)

Some employees may be entitled to minimum wage but not overtime. Examples include taxicab drivers and most agricultural workers. Other employees may be entitled to overtime but not minimum wage, such as tipped employees and employees aged 16-17.

Required Breaks

Michigan does not require public or private employers to provide adult workers with meal breaks or a rest period. If an employer chooses to provide short breaks (five to 20 minutes), they count as hours worked and must be paid.

The only break requirement in Michigan is for minors. The state’s Youth Employment Standards Act (YESA) applies to public and private employers. It requires that employees under the age of 18 receive a 30‑minute uninterrupted meal break if they’re scheduled for more than five hours.

Child Labor Rules

YESA also regulates when, how, and in what jobs minors may be employed. It sets limits on the number of hours and times of day they may work, depending on their age. Younger teens have stricter limits, especially during the school year.

In addition, YESA requires most minors under 16 to have a work permit before they’re legally allowed to work in Michigan. The law does provide very limited exceptions to this rule. For example, a child doesn’t need a permit to work on a farm owned or operated by their parent/guardian. Other exceptions include:

• Golf caddies
• Election inspectors
• Newspaper carriers

For these and a few other limited categories, the YESA permit requirement doesn’t apply.

Prevailing Wage Requirement

In 2023, Michigan reinstated prevailing wage requirements for state-funded public construction projects. This means that contractors for these projects must pay wages and benefits similar to those typically paid in the local area for like work. The rule only applies to construction laborers on these state‑funded projects.

Leave Protections

Federal and state law provide leave protections for employees working in Michigan. For example, state law prohibits employers from punishing employees for taking jury duty leave. We explore additional protections below.

Paid Medical Leave Act

Michigan’s Paid Medical Leave Act requires private employers with 50+ employees to provide paid sick leave to eligible employees. This group includes employees who:

• Work an average of at least 25 hours per week
• Perform their work primarily in Michigan
• Don’t fall under the FLSA’s white-collar exemption
• Aren’t covered by a collective bargaining agreement in effect before March 29, 2019

Additional technical exclusions may apply. Employees can use this leave for their own health needs, to care for a family member, or for issues related to domestic violence/sexual assault.

Family and Medical Leave Act

The federal Family and Medical Leave Act (FMLA) provides unpaid, job‑protected leave for serious health conditions, bonding with a new child, or caring for a family member. Employees entitled to FMLA protection are those who:

• Work for an employer with 50+ employees within 75 miles of the worksite
• Have worked for that employer for at least 12 months (not necessarily consecutive)
• Have worked at least 1,250 hours in the previous 12 months

This applies to both public and private employers with one exception. The employer-size requirement doesn’t apply to public employees, but the others do.

Workplace Safety

The Michigan Occupational Safety and Health Administration (MIOSHA) enforces workplace safety rules in the state of Michigan.

MIOSHA protects employees from unsafe conditions and ensures employers follow safety standards. This includes rules for equipment, training, and reporting injuries. Employees may also be covered by workers’ compensation if they are injured on the job.

MIOSHA covers almost all public and private employers in the state. It does not cover federal government employers or industries under exclusive federal jurisdiction, like the postal service. The federal Occupational Safety and Health Act of 1970 (OSHA Act) provides similar protections for employees of these employers.

Anti‑Discrimination Protections

Several state and federal laws protect Michigan workers from discrimination based on protected characteristics. We explore them below.

State Laws

The Elliott‑Larsen Civil Rights Act (ELCRA) is Michigan’s primary anti‑discrimination law. Amongst other types, it prohibits discrimination in all aspects of the employment relationship. This includes recruiting, hiring, firing, workplace treatment, and more.

Protected characteristics under ELCRA include:

• Race
• Color
• National origin
• Sex
• Sexual orientation
• Gender identity or expression
• Religion
• Age
• Height
• Weight
• Marital status
• Disability

ELCRA applies to virtually every employer in the state except the federal government and certain tribal employers.

Michigan’s Persons with Disabilities Civil Rights Act (PWDCRA) provides additional protections for employees with disabilities.

Federal Laws

In addition to state protection, federal anti-discrimination laws apply to most employers in the state. These include:

• Title VII of the Civil Rights Act of 1964: Protects against discrimination based on race, color, national origin, sex, and religion
• Americans with Disabilities Act (ADA): Protects employees from disability discrimination
• Age Discrimination in Employment Act (ADEA): Protects employees aged 40+ from age discrimination
• Equal Pay Act (EPA): Requires equal pay for equal work regardless of sex

These laws generally apply to most Michigan employers engaged in interstate commerce. But each has its own coverage thresholds and exemptions.

Record‑Keeping Requirements for Employers

Under Michigan’s Payment of Wages and Fringe Benefits Act, employers must maintain certain records. For each employee, these records must include the following information.

• Name, address, and birth date
• Occupation
• Total hours worked each pay period
• Total wages paid
• Itemized deductions
• Details of fringe benefits, like health insurance or bonuses

This state law also mandates that employers establish a regular payday, follow it consistently, and pay employees all earned wages on that schedule. These rules apply to almost all employers except the federal government and certain tribal employers. The Wage and Hour Division of Michigan’s Department of Labor enforces these requirements.

Recent Legislative Changes

In addition to minimum wage adjustments and the prevailing wage requirement, a couple of recent updates to Michigan’s rules may be worth noting. We examine them both below.

2025 IWOWA Amendments

In 2025, Michigan updated IWOWA after years of court battles over a 2018 ballot proposal. The proposal would have raised the minimum wage more quickly and phased out the tipped wage. The legislature had replaced that proposal with IWOWA back in 2018, but the long lawsuit created confusion about which version of the law actually applied during the litigation.

After the courts confirmed that IWOWA was the valid law, the state passed amendments to clarify and stabilize the rules. The 2025 changes strengthened the wage structure, kept the tipped‑wage system, and explained exactly how future increases are calculated each January so employees and employers know what to expect.

2025 Paid Medical Leave Act Amendments

Later that same year, Michigan updated its Paid Medical Leave Act to cover more workers and make it easier to qualify for paid sick time. The amendments also strengthened enforcement and clarified how sick time is earned and used, giving employees more predictable access to leave when they need it. These updates reflect ongoing regulatory affairs efforts to protect workers and modernize Michigan labor laws.

Wage Theft

Despite wage protections in place for Michigan workers, wage theft can and does still occur. This is when an employer fails to pay its employees what they’re owed.

If you believe you’ve been underpaid, Michigan law allows employees to file complaints with the Wage and Hour Division. Workers may recover unpaid wages, penalties, and, in some cases, additional damages. Michigan.gov contains additional information on how to file a wage complaint.

Retaliation is illegal, and workers are protected under laws like the Whistleblowers’ Protection Act. You may want to consult an attorney first to strategize and ensure your interests are protected.

Arrange a Consultation

Consulting a skilled employment attorney can be invaluable for resolving wage disputes. It’s a good idea to move swiftly, as Michigan’s law gives employees a limited time to file wage claims. This is the statute of limitations. It’s usually three years from the violation date for most state wage claims in Michigan. Once that time passes, you can lose the right to recover.

Meeting with an advisor who’s well-versed in the labor and employment laws of Michigan allows you to share details of your situation with them confidentially. They can give you a rundown of the remedies available to you and help determine your next steps.

If you don’t have an attorney or don’t know how to vet one you can trust, don’t worry. That’s pretty common. It’s why FindLaw has sourced and made its directory of qualified Michigan employment attorneys available for free. It has a wealth of information that includes credentials, ratings, and which ones offer free consultations. After reviewing their backgrounds, pick someone with experience in matters like yours. Meet with them sooner rather than later, and start taking steps toward your next move.