You work hard. You like getting paid. Who doesn't? In Michigan, pay day requirements are governed by two sets of laws -- Federal labor laws and Michigan state laws.
Here, we will focus on Michigan pay day requirements (frequency and manner), minimum wages, and overtime pay.
Pay Day Requirements: How Often
Michigan employers have a few options when it comes to how often to pay their employees: one (1) time per month, two (2) times per month, every two (2) weeks, every week, or more frequently. However, an employer must designate regular paydays. Generally, pay day frequency will depend upon on the employee's occupation.
Method of Payment
Wages may be paid in cash or check. Employers can also pay by direct deposit or issue a "payroll debit card" to an employee -- a stored value debit card that provides an employee access to his or her wages, for withdrawal or transfer by the employee, through a network of automatic teller machines. An employer can't do either of these things without the written consent of the employee.
What is the Minimum Wage in Michigan?
The minimum wage for employees 18 years of age in Michigan is $7.40 per hour. If the employee is 16 or 17 years old, the minimum wage is $7.25 per hour.
What is the Minimum Wage for Tipped Employees?
Employees who receive tips, such as service workers, must be paid a minimum of $2.65 per hour when he or she is earning tips.
When is a Michigan Employee Entitled to Overtime Pay?
If an eligible employee works more than 40 hours in a single week, he or she will be entitled to 1 1/2 times their hourly pay rate. Tipped employees can also receive overtime pay of $6.35 per hour, as long as their reported tips are at least $4.75 per hour.
Certain workers are extempt from receiving overtime pay such as executives receiving a salary or elected officials. To learn more, contact the Michigan Department of Licensing and Regulatory Affairs (LARA).
Pay Day Frequency Requirements: MCL Section 408.472
Pay Day Methods: MCL Section 408.476
Minimum Wage and Overtime Law: Act 154 Minimum Wage and Overtime Act
|Pay Day Requirements||
Employers are free to establish weekly, biweekly, or monthly paydays, but must adhere to the schedule once it has been established.
For weekly or biweekly paydays: Wages must be paid on or before the 14th day following the work period in which they were earned.
For monthly paydays: wages must be paid on or before the first day of the calendar month following the month in which they were earned.
Employers without regular paydays must pay wages earned during the first 15 days of the month on or before the first day of the following month; wages earned during the last 15 days of the month must be paid on or before the 15th day of the following month.
|Method of Payment||
Cash, check. Can also pay by direct deposit or payroll debit card (with employee consent).
|Minimum Wage||18 years old: $7.40 per hour; 16 or 17 years old: $7.25 per hour; Tipped employees: $2.65 per hour|
|Overtime Pay||If employee works more than 40 hour per week: 1 1/2 times hourly rate, Tipped employees receive $6.35 per hour|
|Employers Who Must Follow State Minimum Wage Laws||
Employers who employ 2 (two) or more employees who are 16 years old and older.
Federal, state, and local governments do not have to follow state minimum wage laws.
|Workers Not Covered Under State Minimum Wage Law||
Michigan Department of Licensing and Regulatory Affairs (LARA), Wage and Hour Program (517) 322-1825.
Michigan employment laws are constantly changing. Please consider contacting a local Michigan employment attorneywho can help you better understand the current Michigan laws.
Contact a qualified attorney.