Michigan labor laws set a minimum wage of $13.73 per hour as of January 1, 2026, require every employer in the state to provide earned sick time, ban discrimination on a broad list of protected characteristics, and give workers specific rights around final pay, personnel files, and retaliation. Most of these standards are enforced by the Department of Labor and Economic Opportunity through its Wage and Hour Division, with discrimination claims handled separately by the Michigan Department of Civil Rights.1State of Michigan. LEO – Minimum Wage and Overtime
At-Will Employment and When It Doesn’t Apply
Michigan is an at-will state. Either side can end the working relationship at any time, for any reason that isn’t illegal, without notice. That default covers most private-sector jobs, but the exceptions do real work.
A firing crosses the line in several situations:
- Public policy. An employer cannot fire you for refusing to break the law, for exercising a legal right, or for activity a statute specifically protects, such as filing a workers’ compensation claim.
- Legitimate expectations. An employee handbook or written policy that promises a specific termination procedure can bind the employer, even without a formal contract.
- Oral just-cause promises. Clear, specific promises of continued employment can create an implied just-cause requirement.
- Fixed-term contracts. If you were hired for a set period, you generally cannot be fired mid-term without just cause unless the contract says otherwise.
Minimum Wage and Overtime
The Improved Workforce Opportunity Wage Act (MCL 408.411–408.424) sets the floor.2Michigan Legislature. Michigan Compiled Laws 408.411 – Workforce Opportunity Wage Acta> After the Michigan Supreme Court’s Mothering Justice decision restored the 2018 ballot initiative, the rate follows an accelerated schedule: $12.48 on February 21, 2025, $13.73 on January 1, 2026, and $15.00 on January 1, 2027.1State of Michigan. LEO – Minimum Wage and Overtime After 2027, the rate adjusts annually for inflation.
The tipped-wage credit is being phased out. It rises each year until it matches the standard minimum wage. During the transition, direct wages plus tips must still equal at least the full minimum wage for every hour worked; the employer covers any shortfall.
Overtime
Covered employees earn one and one-half times their regular rate for every hour over 40 in a workweek.3Michigan Legislature. Michigan Compiled Laws 408.414a – Workforce Opportunity Wage Act Bona fide executive, administrative, and professional employees are exempt. Michigan tracks the federal Fair Labor Standards Act on those white-collar exemptions, and after a federal court struck down the U.S. Department of Labor’s proposed increase in late 2024, the salary threshold remains $684 per week, or $35,568 per year. Salaried workers earning less than that qualify for overtime no matter what their job title says.4State of Michigan. Wage and Hour Division – Minimum Wage and Overtime Posting
What You Can Recover
An underpaid worker has three years to file a civil action and can recover the unpaid amount plus an equal sum in liquidated damages, effectively doubling the back-pay recovery. Courts may award attorney fees and costs. An employer who fails to pay the required minimum wage also faces a civil fine of up to $1,000 per violation.5Michigan Legislature. Michigan Compiled Laws 408.419 – Workforce Opportunity Wage Act
Earned Sick Time
The Earned Sick Time Act (MCL 408.961–408.974) applies to every employer in Michigan.6Michigan Legislature. Michigan Compiled Laws 408.961 – Earned Sick Time Act There is no 50-employee minimum. Workers accrue one hour of paid sick time for every 30 hours worked. Annual usage caps depend on employer size:7Michigan Legislature. Michigan Compiled Laws 408.963 – Earned Sick Time Act
- Employers with 10 or more employees: up to 72 hours of paid sick time per year.
- Employers with fewer than 10 employees: up to 40 hours of paid sick time per year.
Unused hours carry over up to the same limits unless the employer sets a higher cap. A small employer can skip accrual tracking by front-loading 40 hours at the start of the year.7Michigan Legislature. Michigan Compiled Laws 408.963 – Earned Sick Time Act
You can use earned sick time for your own illness, injury, or preventive care, and to care for family members including children, parents, spouses, and grandparents. It also covers absences tied to domestic violence or sexual assault, including legal proceedings and counseling. Employers may ask for reasonable documentation only when an absence runs longer than three consecutive days.
Getting Paid and Reading Your File
The Payment of Wages and Fringe Benefits Act (MCL 408.471–408.490) requires a regular weekly or biweekly payday and a wage statement showing hours worked and gross wages.8Michigan Legislature. Michigan Compiled Laws Act 390 of 1978 – Payment of Wages and Fringe Benefits If you are fired, all earned wages are due immediately, or as soon as the amount can reasonably be determined. If you quit, all earned wages are due as soon as the employer can calculate the total.9Michigan Legislature. Michigan Compiled Laws 408.475 – Payment of Wages and Fringe Benefits Act Payout of fringe benefits at separation follows the employer’s own written policy or the employment contract. The act also bars deductions from a paycheck without the employee’s prior written consent.
Under the Bullard-Plawecki Employee Right to Know Act (MCL 423.501–423.512), you have the right to review your personnel file and get copies.10Justia. Michigan Code Chapter 423 – Bullard-Plawecki Employee Right to Know Act If you dispute something in the file, you can try to negotiate its correction or removal. Failing agreement, you can file a written rebuttal that becomes a permanent part of the record, or bring a court action to have the disputed information expunged.
Discrimination on the Job
Michigan’s Elliott-Larsen Civil Rights Act (PA 453 of 1976) prohibits discrimination in hiring, firing, pay, and other terms of employment based on religion, race, color, national origin, age, sex, height, weight, or marital status.11State of Michigan. Elliott-Larsen Civil Rights Act It also protects workers affected by pregnancy, childbirth, or related medical conditions. A 2023 amendment added sexual orientation and gender identity as protected classes.
The Persons with Disabilities Civil Rights Act (PA 220 of 1976) covers physical and mental disabilities and applies to every employer with at least one employee, broader than the federal ADA’s 15-employee threshold. Employers must provide reasonable accommodations unless doing so would impose an undue hardship. A “disability” here means a physical or mental characteristic that substantially limits a major life activity but is unrelated to the person’s ability to do the job with or without accommodation.12State of Michigan. Persons with Disabilities Civil Rights Act
Discrimination charges go to the Michigan Department of Civil Rights, which investigates, attempts conciliation, and can pursue enforcement. Workers may also file in court.
Union Dues After the Right-to-Work Repeal
Michigan repealed its right-to-work laws through Public Acts 8 and 9 of 2023.13Michigan Legislature. 2023 Public Act 8 The repeal took effect March 30, 2024.14State of Michigan. MI Repeal of FTW/RTW A private-sector union and employer can now agree that everyone in a bargaining unit must pay dues or service fees to keep their job. If the contract contains that clause, refusing to pay can be grounds for termination.p>
The change is private-sector only. Public employees remain covered by the U.S. Supreme Court’s Janus v. AFSCME decision, which bars mandatory union fees as a condition of government employment.
Workers’ Compensation
The Workers’ Disability Compensation Act requires coverage from any employer with three or more employees, or with even one employee working more than 35 hours per week for 13 weeks or longer. Both public and private employers are covered. Sole proprietors, domestic workers, and independent contractors are among the exempt categories.
Workers’ compensation pays medical expenses and a portion of lost wages for on-the-job injuries and occupational disease. The system is no-fault, so you don’t need to prove employer negligence. The tradeoff is that you generally cannot sue the employer in civil court for the injury. Report a workplace injury to your employer immediately, and file a claim with the Workers’ Disability Compensation Agency if benefits are disputed.
Rules for Workers Under 18
The Youth Employment Standards Act (MCL 409.101–409.124) adds restrictions on top of everything else.15Michigan Legislature. Michigan Compiled Laws 409.101 – Youth Employment Standards Act Before starting any job, a minor must obtain a work permit from their school district.
Hour limits for 16- and 17-year-olds shift with the school calendar:16Michigan Legislature. Michigan Compiled Laws 409.111 – Youth Employment Standards Act
- School in session: no more than 24 hours per week, with a nightly cutoff of 10:30 p.m., extended to 11:30 p.m. on Fridays and Saturdays.
- School not in session: up to 48 hours per week and 10 hours per day, with no work between 10:30 p.m. and 6:00 a.m.
Hazardous occupations, including operating heavy machinery and handling explosives, are off limits for minors. Violations are misdemeanors, and repeat offenders can face felony prosecution with significantly steeper fines.
Workers under 18 must also get an uninterrupted 30-minute break after five continuous hours of work, and employers must document those breaks. This is one of the few break rules in Michigan law. Adult employees have no state-law right to a meal or rest period. If an employer voluntarily gives adults a short break of 20 minutes or less, federal rules require that time to be paid; longer meal periods can be unpaid, but only if the worker is completely relieved of duty.
Retaliation and the 90-Day Whistleblower Deadline
The Whistleblowers’ Protection Act (MCL 15.361–15.369) makes it illegal for an employer to fire, threaten, or otherwise retaliate against an employee for reporting a suspected violation of state, local, or federal law to a public body. It also covers employees asked by a government agency to take part in an investigation or hearing.17State of Michigan. Whistleblowers Protection Act
The deadline is tight. A retaliation lawsuit must be filed within 90 days of the alleged violation. Miss that window and the claim is gone. A successful whistleblower can recover reinstatement, back pay, fringe benefits, actual damages, and attorney fees, and the employer faces a civil fine of up to $500. To win, the employee must prove by clear and convincing evidence that they reported or were about to report a legal violation, a higher standard of proof than most employment cases require.