Michigan

Labor Compliance Guide

Hours & Pay Regulations

Normal Working Hours

Work Shift

The work shift shall normally consist of eight (8) consecutive work hours which may be interrupted by a meal period. For purposes of this Article the following work shifts are defined:

      • Day Shift: Starts between 5:00 am and 1:59 pm
      • Afternoon Shift: Starts between 2:00 pm and 9:59 pm
      • Evening Shift: Starts between 10:00 pm and 4:59 am

Employees may be assigned to work rotating or relief shifts. No employee may be required to work a split shift.

 

Workday

The workday shall consist of twenty-four (24) consecutive hours commencing at 12:01 a.m. Whenever practicable and consistent with program needs, employees shall work on five (5) consecutive work days separated by two (2) consecutive days off.

 

Work Schedules

Work schedules are defined as an employee’s assigned shift, work days and days off. Schedules not maintained on a regular basis or on a fixed rotation basis shall be established as far in advance as possible, but at least fourteen (14) calendar days prior to the beginning of the pay period to be worked. Changes in scheduled work shifts and other scheduling changes may be made no less than ninety-six (96) hours prior to the implementation of the change. The work schedule of the employee shall not be altered within the biweekly work period solely to avoid premium overtime. Any change in work schedule not in compliance shall result in compensation of hours worked outside the regularly scheduled shift at 1.5 times the employee’s regular rate of pay. With the Employer’s approval, employees may voluntarily agree, without penalty to the Employer, to changes in the work schedules. Any changes in scheduling shall be confirmed in writing to the employee.

 

Travel Time in the Department of Transportation

Where an employee’s Official Work Station (OWS) is designated as Project Office, and the said employee is directed by his/her supervisor to report directly from his/her home to a Temporary Work Station (TWS), the employee’s work time shall be calculated as follows:

      • In the event the employee’s drive time from his/her home to his/her TWS does not exceed the drive time between the employee’s home and his/her OWS by at least fifteen (15) minutes, the employee shall continue to be paid for his/her normal work day.
      • In the event the employee’s drive time from his/her home to his/her TWS exceeds the drive time between the employee’s home and his/her OWS by at least fifteen (15) minutes, the employee’s work schedule may be adjusted, or should the work day not be shortened, such time shall be added to the employee’s workday and the employee shall be paid for such time at the appropriate overtime rate.

Overtime

Most Michigan employers are required to pay employees overtime at time-and-one-half their regular rates for all hours worked in excess of 40 in a week. Compensatory time off may be provided in lieu of overtime pay at the employee’s discretion.

 

Compensatory Time

Compensatory time systems shall be a proper subject for secondary negotiations. Compensatory time shall be credited at the rate of 1.5 times the number of hours worked. Employees who wish to use earned compensatory time may do so only with prior approval of their supervisor but subject to the same criteria as applicable to annual leave. Compensatory time must be utilized before the employee uses annual leave credits except where an employee would lose annual leave credits because of the maximum allowable annual leave accumulation. For purposes of calculating compensatory time, sick leave and annual leave shall not be treated as time worked. Annual leave buyback shall be treated as time worked.

Breaks

Unless the granting of these rest periods would result in the employer having to pay overtime or to add additional personnel to the work site, there shall be two (2) rest periods of fifteen (15) minutes each during each regular eight (8) hour work shift; one during the first half of the shift and one during the second half of the shift. The Employer retains the right to schedule employee’s rest periods and to shorten such periods to fulfill operational needs on a particular day.

 

Current practices regarding breaks taken in the course of operational duties or on an irregular basis may be maintained. Rest periods shall not be accumulated and, when not taken, shall not be the basis for additional pay or time off. Current practice regarding rest periods during overtime periods shall continue.

 

Breast Feeding Break

A mother who needs to express breast milk for her child at work must be provided reasonable unpaid break time to express breast milk and must, when possible, be provided a private area to express milk that is not a bathroom, is shielded from view and is free of intrusion from coworkers and the public, and has access to an electrical outlet.

 

The employer must make a reasonable effort to provide a private area to express milk. Employers are not required to provide break time if doing so would seriously disrupt operations. Breaks already provided may fulfill this requirement.

Annual Leave

Michigan does not have a paid annual leave that applies generally to private employee.

Minimum Wage

Effective January 1, 2018, the state’s hourly minimum wage has increased to $9.25, and the state’s hourly minimum cash wage for tipped employees has increased to $3.52, provided that reported tips per hour average at least $5.73.

 

Effective January 1, 2019, the state’s hourly minimum wage is to be annually reviewed for inflation-related adjustments based on changes to the consumer price index for the most recent five-year period for which data is available, not to exceed 3.5 percent.

 

The adjusted wage rate is to be posted on the website of the Department of Licensing and Regulatory Affairs’ Wage and Hours Division by February 1 of the year it is calculated and is to be effective beginning April 1 of that year. Employers may pay $4.25 an hour to new employees who are younger than 20 for the first 90 days of employment. Minors who are younger than 18 may be paid 85 percent of the hourly minimum wage rate.

Tips & Gratuities

Effective January 1, 2018, the state’s hourly minimum cash wage for tipped employees has increased to $3.52, provided that reported tips per hour average at least $5.73. Tipped employees may be paid 38 per- cent of the hourly minimum wage rate if certain conditions are met.

Meal Breaks

In accordance with current practice, work schedules shall provide for the work shift to be broken at approximately midpoint by an unpaid meal period of not less than thirty (30) minutes. This shall not preclude work schedules which provide for an eight (8) hour work day, inclusive of a meal period. The Employer may reasonably schedule meal periods to meet operational requirements. Such meal periods may not be rescheduled arbitrarily.

 

Those employees who regularly receive an unpaid meal period, and are required to work, or be at their work assignments, and are not relieved for such meal periods, shall have such time actually worked treated as hours worked for the purpose of computing overtime unless an alternate meal period is available. An employee, with the approval of his/her supervisor, may work through a scheduled meal period. Such time shall be considered as time worked for the purpose of calculating overtime. The length of an employee’s meal period may only be changed with at least twenty (20) days advance notice. The length of an employee’s meal period may not be changed more than once in a six (6) month period.

Special Leave

Unpaid Leave
Employees may be eligible to take unpaid, job-protected, leave under the Family Medical Leave Act (“FMLA”). Please refer to the main United States page for further details on this Federal law.
Paid Sick Leave

On September 5, 2018, the Michigan Legislature enacted the initiative called the “Earned Sick Time Act,” which generally required employers to provide paid sick leave to employees. The newly enacted “Paid Medical Leave Act” replaces and greatly alters the “Earned Sick Time Act” passed in September. Michigan’s new Paid Medical Leave Act (“Act”) will go into effect on March 29, 2019. 

 

On September 5, 2018, the Michigan Legislature enacted the initiative called the “Earned Sick Time Act,” which generally required employers to provide paid sick leave to employees. The newly enacted “Paid Medical Leave Act” replaces and greatly alters the “Earned Sick Time Act” passed in September. Michigan’s new Paid Medical Leave Act (“Act”) will go into effect on March 29, 2019. 

 

Exemptions

This new legislation only applies to employers who employ 50 or more employees. Exempts employees exempt from FLSA overtime requirements, private sector employees covered by a collective bargaining agreement, temporary workers, employees who work in other states, independent contractors, variable hour employees, certain part-time and seasonal employees and flight deck, cabin crew and railroad workers.

 

Accrual and Leave Carry Overs

The law specifies employees would accrue 1 hour of paid sick leave for every 35 hours worked, up to 40 hours per year. This will allow an employer to limit accrual to 1 hour per week. An employer is not required to allow an eligible employee to use more than 40 hours of paid sick leave in a single benefit year or to carry over more than 40 hours of time from one benefit year to another. The time begins to accrue on the effective date or date of hire, but the employer may allow new employees to wait 90 days before using their time.

 

Employers may provide all employees 40 hours at the start of a benefit year to avoid carry-over. Employers can also pro-rate time for new employees. The law creates a rebuttable presumption that an employer is in compliance with the law if the employer provides the requisite hours annually. This time can include, paid vacation days, personal days and paid time off.  The law specifies time may be used in 1-hour increments unless the employer has a different increment policy and that policy is in writing in an employee handbook. The law requires the employer to pay at a pay rate equal to the greater of either the normal hourly wage, the base wage or the applicable minimum wage rate.

 

Exemptions

This new legislation only applies to employers who employ 50 or more employees. Exempts employees exempt from FLSA overtime requirements, private sector employees covered by a collective bargaining agreement, temporary workers, employees who work in other states, independent contractors, variable hour employees, certain part-time and seasonal employees and flight deck, cabin crew and railroad workers.

 

(Note: Part-time is defined as an individual who has worked, on average, fewer than 25 hours/week during the preceding calendar year. A seasonal employee is defined as an individual employed by an employer for 25 weeks or less in a calendar year for a job scheduled for 25 weeks or fewer.)

 

Accrual and Leave Carry Overs

The law specifies employees would accrue 1 hour of paid sick leave for every 35 hours worked, up to 40 hours per year. This will allow an employer to limit accrual to 1 hour per week. An employer is not required to allow an eligible employee to use more than 40 hours of paid sick leave in a single benefit year or to carry over more than 40 hours of time from one benefit year to another.
The time begins to accrue on the effective date or date of hire, but the employer may allow new employees to wait 90 days before using their time.

Employers may provide all employees 40 hours at the start of a benefit year to avoid carry-over. Employers can also pro-rate time for new employees.

The law creates a rebuttable presumption that an employer is in compliance with the law if the employer provides the requisite hours annually. This time can include, paid vacation days, personal days and paid time off.  The law specifies time may be used in 1-hour increments unless the employer has a different increment policy and that policy is in writing in an employee handbook. The law requires the employer to pay at a pay rate equal to the greater of either the normal hourly wage, the base wage or the applicable minimum wage rate.

Parental Leave

This an FMLA leave of absence for employees who become parents of newly born, adopted or fostered child(ren); or who request leave to care for their newborn child. An eligible employee is entitled to a total of 12 workweeks of FMLA leave during a 12 month period. Parental leave must conclude within 12 months of the birth or placement. After exhausting FMLA leave entitlement, an employee may be eligible for a parental leave of absence for birth or adoption for up to six months, as provided in CS Regulations or the applicable collective bargaining agreement. Sick leave may not be used to substitute unpaid Parental Leave for paid leave. Parental leave taken under the FMLA may count against other parental leave entitlements.

Long Term Disability Leave

Long Term Disability (LTD) is a self-funded program that provides income protection if you should lose wages as a result of a medical injury, illness, or pregnancy that result in a total disability of a least 14 calendar days.

Last updated on: March 15th, 2019