Michigan is in the middle of a multi-year minimum wage increase and now requires earned sick time for nearly every employer. This summary reflects guidance from the Department of Labor and Economic Opportunity (LEO) Wage and Hour Division.
EZTime labor rule alerts flag overtime and missed rest periods before payroll.
| Topic | Rule |
|---|---|
| Minimum wage | $13.73 per hour since January 1, 2026; $15.00 on January 1, 2027 (LEO) |
| Tipped employees | $5.49 per hour in 2026; $6.30 on January 1, 2027 (LEO FAQ) |
| Minors and trainees | 85% rate for workers under 18; $4.25 training wage for new hires under 20 for 90 days |
| Overtime | 1.5x the regular rate after 40 hours in a 7-day workweek; no daily overtime |
| Breaks | None required for adults; minors need a documented 30-minute break after 5 hours (LEO) |
| Earned sick time | 1 hour per 30 hours worked for all employers (ESTA FAQ) |
| Pay frequency | A regular schedule of weekly, biweekly, semimonthly or monthly paydays |
| Final pay | On the regular payday for the period in which the employee quits or is discharged |
| Youth work permits | Required for minors under 18 unless exempt; issued through LEO starting October 2, 2026 |
Michigan's minimum wage is $13.73 per hour as of January 1, 2026, up from $12.48. LEO's minimum wage page also confirms the next step: $15.00 per hour on January 1, 2027, under the schedule set by Senate Bill 8, which amended the Improved Workforce Opportunity Wage Act. The U.S. DOL's state table adds that after 2027 the rate will be adjusted annually by formula.
According to LEO's Minimum Wage and Overtime FAQ, the state law applies to employers with 2 or more employees who are 16 or older. When state and federal rules differ, the stricter standard applies, so Michigan's higher rate controls for nearly all businesses.
Michigan allows a tip credit, but the cash wage is rising faster than in most states. For 2026 the tipped rate is $5.49 per hour, which LEO describes as 40% of the full minimum wage, provided the employee receives at least $8.24 per hour in tips. On January 1, 2027, the tipped rate becomes $6.30 per hour, or 42% of the $15.00 minimum. Tipped employees must be told about the tip provisions and must report their tips, and the employer must make up any shortfall so wages plus tips reach the full minimum.
Workers under 18 may be paid 85% of the minimum wage, which LEO lists as $11.67 per hour for 2026 and $12.75 for 2027. Separately, newly hired employees under 20 may be paid a $4.25 training wage for their first 90 calendar days. Set these rates up carefully in payroll, because a worker's eligibility changes the day they turn 18 or 20, or when the 90-day window ends.
Non-exempt employees must be paid one and one-half times their regular rate for hours worked over 40 in a 7-day workweek. Michigan has no daily overtime rule. LEO's FAQ lists a salary threshold of $684 per week ($35,568 per year) for the executive, administrative and professional exemptions. Exempt status also depends on job duties, so review each role before you stop tracking overtime. For a refresher, see our FLSA overtime guide or use the overtime calculator.
LEO states plainly that there are no requirements for breaks, meal or rest periods for employees 18 years of age or older. You may set your own break policy for adults.
Minors are different. Employees under 18 may not work more than five hours without a documented, uninterrupted 30-minute break. LEO expects daily time records to show the shift start and end and the break itself, so a paper schedule is not enough. A time clock that records break punches gives you the documentation you need.
Michigan's Earned Sick Time Act (ESTA) covers all employers with one or more employees, other than the federal government. Key points from LEO's ESTA FAQ:
Use the PTO accrual calculator to check balances, and give employees the required written notice of their ESTA rights.
Michigan's Payment of Wages and Fringe Benefits Act requires that employees receive wages on a regular basis: weekly, biweekly, semimonthly or monthly. LEO's overview of the Act notes that payday frequency can depend on the occupation; hand harvesters, for example, must be paid at least once a week unless a written contract says otherwise.
Final pay is due on the regular scheduled payday for the period in which the employee quits or is discharged, according to LEO's Payment of Wages page. Special, faster rules apply to hand harvesters. Fringe benefits such as vacation, holiday, sick or bonus pay are owed according to your written contract or written policy, so put your payout rules in writing.
Every payday, employees must receive a retainable statement showing hours worked, gross wages paid, an itemization of deductions and the dates covered. Deductions are limited to those required by law or authorized in writing by the employee.
Michigan's Youth Employment Standards Act covers minors under 18. LEO's Youth Employment FAQ lists these limits:
| Age | Hour limits |
|---|---|
| 14 and 15 | 3 hours a day and 18 hours a week when school is in session; 8 hours a day and 40 hours a week otherwise; between 7:00 a.m. and 7:00 p.m., or until 9:00 p.m. from June 1 to Labor Day; not during school hours |
| 16 and 17 | 10 hours a day; 24 hours in a school week and 48 hours in a non-school week; no more than 6 days a week; 6:00 a.m. to 10:30 p.m. Sunday to Thursday in school weeks, and to 11:30 p.m. on Friday, Saturday and when school is out |
A work permit is required before a minor starts work, unless the minor is exempt. LEO reports that starting October 2, 2026, school districts no longer issue permits; employers and minors must register with the Wage and Hour Division through the Youth Employment Permit Portal. Farm work does not need a permit, but agricultural processing does.
Michigan requires employers to keep records for three years showing each employee's name, classification, pay rate and total hours worked in each pay period, plus ESTA hours and usage. LEO's posting requirements page lists the required Minimum Wage and Overtime poster, the Earned Sick Time Act poster and, for businesses that employ minors, the Youth Employment poster.
Between the 2027 wage increase, sick time accrual and documented breaks for minors, Michigan employers need precise records. EZTime gives you a GPS mobile time clock with geofencing, NFC tags, a tablet kiosk and biometric clocks, so every punch is tied to the right person and place. Build schedules with shift templates and let staff request swaps, get overtime and break alerts before a shift goes long, and track PTO and sick-leave balances automatically. When the pay period closes, export payroll-ready Excel or PDF reports that work with any payroll software. See the attendance clock and scheduling software, or check pricing: plans start at $2 per employee per month with a 14-day trial.
This guide is general information, not legal advice. Laws change; check the Michigan LEO Wage and Hour Division or an employment attorney. Last reviewed November 2026.
Michigan’s minimum wage is $13.73 per hour as of January 1, 2026, and it increases to $15.00 per hour on January 1, 2027.
The tipped rate is $5.49 per hour in 2026 and $6.30 per hour starting January 1, 2027. Tips plus wages must reach the full minimum wage or the employer pays the difference.
Michigan has no break requirement for employees 18 or older. Employees under 18 may not work more than five hours without a documented 30-minute uninterrupted break.
Employees earn at least 1 hour of earned sick time for every 30 hours worked. Small businesses with 10 or fewer employees must allow at least 40 paid hours a year and other employers at least 72.
Final wages are due on the regular scheduled payday for the pay period in which the employee quits or is discharged.