Employees in many industries often work beyond their regular schedules, making it essential to understand how Michigan labor laws regulate overtime pay.
Under Michigan overtime laws 2026, employers are required to fairly compensate eligible employees who work more than 40 hours in a workweek, unless they qualify for an exemption.
This guide covers everything you need to know about overtime laws in Michigan, including overtime pay rates, minimum wage impact, exemptions, rules for salaried employees, and key compliance requirements.
Michigan Overtime Laws Summary
| State overtime law | Overtime applies at 1.5 times the employee’s regular rate of pay after 40 hours in a workweek |
| Michigan minimum wage | $13.73 per hour |
| Minimum overtime wage | $20.60 per hour for minimum wage workers |
| Comp time instead of overtime pay | Allowed under strict rules |
| Salary threshold for exemption | $684 per week |
This Article Covers
- Michigan Overtime Pay Rates
- Michigan Overtime Rules for Firefighters and Law Enforcement Officers
- Michigan Overtime Laws for Healthcare Workers
- Overtime Exemptions in Michigan
- Comp Time Instead of Overtime Pay in Michigan
- Overtime Pay for Tipped Employees in Michigan
- Overtime Pay for Salaried Employees in Michigan
- Overtime Pay with Bonuses in Michigan
- Penalties for Unpaid Overtime Compensation in Michigan
Michigan Overtime Pay Rates
Under Michigan overtime law, employers with two or more employees must provide overtime pay. According to the Michigan Improved Workforce Opportunity Wage Act (IWOWA), overtime applies to all hours worked beyond 40 in a workweek.
What is considered overtime in Michigan?
Overtime in Michigan is defined as any time worked over 40 hours in a single workweek, regardless of whether the employee is paid hourly or salary (unless exempt).
Michigan’s minimum wage is $13.73 per hour, meaning the minimum overtime rate is $20.60 per hour for minimum-wage workers.
However, there are some exceptions to the Michigan minimum wage rules:
- Training wage for first 90 days (for employees under 20): $4.25 per hour → Overtime = $6.38/hour
- Minimum wage for minors under 18: 85% of minimum wage = $11.67/hour → Overtime = $17.50/hour
Learn about your overtime rights in Michigan through our detailed guide.
Michigan Overtime Rules for Firefighters and Law Enforcement Officers
Michigan overtime rules for certain public workers, like firefighters and public safety officers, are as follows:
- 28-day work period: Overtime only applies after 216 hours in 28 days. Any hours above 216 hours are paid at 1.5x the employee’s regular rate of pay.
- Shorter work periods (7–27 days): The overtime limit is adjusted proportionally based on the above rule. However, overtime must still be paid at a rate of 1.5x the regular hourly wage.
- Shift swapping: If firefighters voluntarily trade shifts, overtime is calculated as if the swap never happened.
Michigan Overtime Laws for Healthcare Workers
Michigan law allows hospitals or care facilities for the sick, elderly, or disabled to use a 14-day work period instead of seven days. This must be agreed in writing or mentioned in the employment policy before work is performed.
Overtime applies when an employee works more than eight hours in a day, or more than 80 hours in 14 days, and is paid at 1.5 times the employee’s regular hourly wage.
Overtime Exemptions in Michigan
In Michigan, employees earning at least $684 per week may qualify as exempt under federal law if they meet job duty requirements.
Other exempted employees under Michigan overtime laws exemptions include:
- Employees in genuine executive, administrative, or professional roles, including teachers
- Retail or service employees remain exempt even if less than 40% of their weekly hours are spent on non‑exempt job tasks
- Elected officials
- Political appointees (not covered under civil service rules)
- Seasonal amusement and recreational workers operating ≤7 months/year
- Agricultural workers (farming, livestock, crops, etc.)
- Employees not covered by Michigan’s minimum wage laws
Comp Time Instead of Overtime Pay in Michigan
Unlike many states, Michigan allows compensatory time (comp time) in place of overtime pay, but only under strict conditions:
- Comp time must be agreed upon through a union contract, a written employer policy, or an employee’s written request before overtime. Employees cannot be forced to accept comp time.
- Employees earn 1.5 hours of paid comp time off for every overtime hour worked. This comp time can be used for any reason, unless it would seriously disrupt business operations.
- Employers must also provide at least ten days of paid leave each year.
- Employers cannot pressure, threaten, or punish employees for refusing comp time instead of overtime pay.
- Employees can accumulate up to 240 hours of comp time.
- Employees may request payout of comp time at their regular pay rate, which must be fulfilled within 30 days. When employment ends, unused comp time must be paid out in cash. This payout cannot reduce the employee’s unemployment benefits or eligibility for these benefits under the Michigan Employment Security Act.
- Employers must track comp time earned and show it on pay records or statements.
- Employers may end their comp time program by giving at least 60 days’ notice.
Overtime Pay for Tipped Employees in Michigan
Under the Michigan Improved Workforce Opportunity Wage Act, employers are allowed to take a tip credit from a tipped employee’s hourly wages.
Employers can pay tipped workers a lower cash wage of $5.49 and claim a tip credit of up to $8.24 per hour. However, the employee’s total pay (tips + minimum wage) must meet Michigan’s minimum wage of $13.73. If their earnings fall short, the employer must cover the difference.
Tipped employees working overtime must be paid at least 1.5 times their regular rate. Overtime must be calculated using the full minimum wage of $13.73, not the lower cash wage.
Learn how to calculate overtime pay in Michigan, or use Jibble’s FREE overtime calculator to do it for you.
Overtime Pay for Salaried Employees in Michigan
To calculate overtime for salaried employees, employers must divide their salary by the number of hours it is meant to cover to get the employee’s regular hourly rate.
Regular rate = Salary / Total hours the salary covers
Example:
Monthly salary = $3,000
Hours = 160
Regular rate = $18.75/hour
Overtime rules:
If an employee’s work schedule is less than 40 hours → extra hours up to 40 must be paid at the employee’s regular rate. For hours worked beyond 40, overtime applies at 1.5x the employee’s regular pay.
Example: Let’s say the employee’s regular work hours are 35 hours a week, and the employee has worked 42 hours.
Since the regular hours (35) are less than 40, the employee will be paid the regular rate for the extra 5 hours worked up to 40.
They will receive one and a half times the regular rate ($18.75 x 1.5 = $28.12) for the extra 2 hours worked over 40 hours.
5 hours (extra time up to 40) x $18.75 (regular rate) = $93.75 (pay for the extra hours up to 40)
2 hours (extra hours above 40) x $28.12 (1.5x regular rate) = $56.24 (pay for hours above 40)
Total overtime pay: $93.75 + $56.24 = $149.99
If the regular hours equal 40, any hours worked beyond that are paid at one and a half times the regular rate.
Example: Let’s say the employee worked 42 hours.
Overtime pay = 1.5 x $18.75 (employee’s regular rate) x 2 (extra hours) = $56.24
Explore other salaried employee rights in Michigan.
Overtime Pay with Bonuses in Michigan
Bonuses must be included in an employee’s total earnings when calculating overtime pay.
Employee’s total earnings = Wage + bonus
Regular rate = Total earnings / Hours worked
Once the regular rate is calculated, overtime pay can be calculated by multiplying the regular rate of pay by 0.5, then multiplying the outcome by the number of overtime hours worked.
Overtime rate = 0.5 x regular rate
Overtime pay = Overtime rate x Overtime hours
Penalties for Unpaid Overtime Compensation in Michigan
Violations of Michigan’s wage laws may result in fines, penalties, and damages. Employees can file a complaint with the Michigan Wage and Hour Division within three years of the violation to initiate an investigation and legal action.
Employers violating Michigan overtime pay laws may face:
- Undue wage payments plus an equal additional amount as liquidated damages
- Reasonable attorney fees and court costs
- Fines up to $1,000 (general violations)
- Fines up to $2,500 (tipped wage violations)
Any contract or agreement to accept less than the required wage does not prevent such actions.
Discover Michigan labor law violation penalties for breaking other rules.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
