At a glance
- Minimum wage: $13.73 an hour, rising to $15.00 on January 1, 2027.
- Tipped cash wage: $5.49.
- Overtime: after 40 hours in a workweek.
- Final paycheck if fired: by the next regular payday.
- Paid sick leave: Yes. Paid family leave program: No.
What Michigan employers need to know
Michigan's wage rules changed more in 2025 than in the decade before. After a court ruling and a legislative deal, the minimum wage rose to $13.73 in 2026 and reaches $15.00 on January 1, 2027, and the tipped cash wage rises gradually to half of the minimum by 2031. The Earned Sick Time Act took effect in February 2025, with lighter rules for employers with 10 or fewer employees.
Michigan minimum wage
| Minimum wage | $13.73 |
|---|---|
| Tipped cash wage | $5.49 |
| Next change | $15.00 (tipped $6.30) on January 1, 2027 |
Pay the highest rate that applies where the employee works: federal, state, or local. For comparison, neighboring states pay Ohio ($11.00), Indiana ($7.25), Wisconsin ($7.25). See every state side by side in our minimum wage by state table, and convert between hourly and annual pay with the salary to hourly calculator.
Michigan overtime rules
The federal FLSA rule applies: overtime at 1.5 times the regular rate after 40 hours in a workweek. There is no daily overtime rule.
Exempt salary test: the federal minimum of $684 a week ($35,568 a year) applies. Duties tests apply too, so job titles alone don't make someone exempt.
Work out overtime owed with our overtime calculator, compare states in overtime laws by state, and check classification with our guide to exempt vs non-exempt employees.
Michigan meal and rest break laws
Meal breaks: No state meal break law for adult employees. Federal law doesn't require meal breaks either, but if you give one of 30 minutes or more and the employee is fully relieved of duty, it can be unpaid.
Rest breaks: No state rest break law for adults. Under federal law, short breaks of 5 to 20 minutes that you choose to give must be paid.
Many states have stricter break rules for minors. Compare adult rules nationwide in break laws by state, and total up shifts with the time card calculator.
Michigan final paycheck law
| If you fire or lay off the employee | By the next regular payday. |
|---|---|
| If the employee quits | By the next regular payday. |
| Unused vacation or PTO | Not required by state law. Follow your written policy or contract, and apply it consistently. |
Build the deadline into your offboarding checklist. Our offboarding guide covers the full process, the PTO payout calculator works out the amount, and the final paycheck laws by state table compares every state.
Michigan paid sick leave and family leave
Paid sick leave: Earned Sick Time Act, as amended in 2025: employers with 11 or more employees provide 1 hour for every 30 hours worked, up to 72 hours a year. Employers with 10 or fewer provide up to 40 hours.
Paid family and medical leave: No state paid family leave program. The federal FMLA gives eligible employees of employers with 50 or more employees up to 12 weeks of unpaid, job-protected leave.
Federal FMLA: employers with 50 or more employees within 75 miles must also give eligible employees up to 12 weeks of unpaid, job-protected leave. Read our FMLA guide, and compare states in paid leave laws by state.
Hiring, pay transparency, and payroll setup
Pay transparency: No statewide pay transparency law requiring pay ranges in job postings.
New hire reporting: Report each new hire within 20 days of the hire date, the federal deadline.
State income tax withholding: Yes. Register with the state tax agency before the first payroll.
Our pay transparency laws guide explains posting rules in more depth, and our job description templates include pay data for 50 common roles.
What trips up Michigan employers
- The minimum wage rises to $15.00 on January 1, 2027.
- The tipped cash wage rises every year until it reaches 50 percent of the minimum wage in 2031.
- Paid sick time caps differ by employer size: 72 hours for 11 or more employees, 40 hours for smaller employers.
Sources and the agency to contact
- Michigan Department of Labor and Economic Opportunity (state labor agency)
- US Department of Labor: state minimum wage laws
- US Department of Labor: minimum wages for tipped employees by state
- US Department of Labor: state meal period requirements
General information for US employers, not legal advice. Laws change and have exceptions by industry, employer size, and city. Confirm current rules with the state agency or employment counsel before you rely on them.
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<a href="https://www.hrtally.com/state-labor-laws/michigan/">Michigan labor laws for employers (2026)</a> (source: HRTally)
Suggested citation: HRTally Research Team. "Michigan labor laws for employers (2026)." HRTally, updated October 20, 2026. https://www.hrtally.com/state-labor-laws/michigan/
Frequently asked questions
What is the minimum wage in Michigan in 2026?
When is a final paycheck due in Michigan?
Are breaks required in Michigan?
Does Michigan require paid sick leave?
Do employers have to pay out unused PTO in Michigan?
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.