Employment and labor laws in Michigan [Updated 2023]

Across the United States, employment laws help protect employees from discrimination, exploitation, unjust work conditions, and unsafe environments. Employers who fail to follow these regulations can be subject to significant penalties and repercussions. Despite the federal laws that apply nationwide, specific legal obligations can vary among states or even between cities.

The state of Michigan provides some additional employee protections, going beyond the federal requirements, when it comes to anti-discrimination protections, disability accommodations, minimum wage, and more. Whether you’re employing workers in Detroit, Grand Rapids, or elsewhere in the Great Lakes State, it’s essential to understand and adhere to Michigan’s unique employment laws. Read on to learn more.

If you want help staying compliant with local Michigan laws, Rippling’s Professional Employer Organization service can handle local tax registration and management, so you can scale your business faster.

Employment vs. labor law: What’s the difference?

While the terms “employment law” and “labor law” seem similar and are often used interchangeably, they have distinct definitions regarding workplace regulations. Employment law centers on the relationship between employees and their employers, protecting the rights and treatment of individual workers. On the other hand, labor law pertains to the dynamics between employers and groups of employees, often involving labor unions.

Here’s more about what each type of law encompasses:

• Employment law covers work hours, overtime, wages, recruitment practices, employer retaliation, and workplace discrimination.
• Labor law is a subset of employment law. Labor law deals specifically with collective action, including union membership, union dues, and collective bargaining agreements.

Wages and hours in Michigan

Throughout the US, federal minimum wage law ensures that workers receive fair compensation. Meanwhile, overtime laws ensure that workers are compensated for working more than 40 hours in a workweek. State minimums may be higher than what’s required at the federal level.

Minimum wage in Michigan

As of 2024, Michigan’s minimum wage is set at $10.33 per hour with some exceptions. Here’s how the state minimum wage breaks down:

• For most workers, the minimum wage is $10.33 per hour.
• Minors between ages 16 and 17 must be paid $8.78 per hour.
• Tipped employees must be paid $3.93 per hour by their employer.
• The minimum training wage for minor employees aged 16 to 19 is $4.25 per hour for the first 90 days of employment. 

Keep in mind: Michigan’s minimum wage has increased every calendar year since 2014, so always check the current numbers to stay up to date. When setting hourly wages, Rippling automatically flags any minimum wage violations based on the employee’s state regulations—which is especially useful for Michigan, where minimum wage rates regularly increase.

Overtime pay in Michigan

Under the Fair Labor Standards Act (FLSA), nonexempt employees must be paid 1.5x their usual rate for any hours worked in excess of 40 hours per week. Exempt employees include those in administrative, executive, or professional jobs, outside salespeople, and certain computer employees.

Rippling helps you adhere to overtime laws in Michigan and elsewhere. Rippling’s payroll software automatically tracks and applies the correct overtime pay rates when an employee clocks additional hours.

Pay transparency in Michigan

Many states—and even some individual cities—have adopted pay transparency laws. This means that organizations are compelled to share compensation information, including salary ranges, wage structures, and more, with job applicants and employees. Pay transparency aims to promote fair pay, a clearer understanding of how compensation is determined, and improved trust between employees and employers.

Michigan is currently considering two pay transparency bills, but none have passed yet. However, Michigan employees are allowed to discuss their compensation and cannot face disciplinary action for doing so.

Rippling helps you enforce compensation bands during onboarding by flagging out-of-band adjustments, so you can approve special cases and block others as needed.

Breaks and rest periods in Michigan

Break periods can be used by employees to have a meal or recuperate during long shifts. While some states compel employers to provide breaks, Michigan does not. Instead, Michigan relies on federal laws around breaks. 

Employers aren’t required to give their adult employees breaks. But if they decide to permit them, employees must be paid for breaks between five and 20 minutes. Employers must also pay employees for all hours worked, including if a worker completes tasks during a designated “lunch break.” However, employers do not have to pay for meal breaks longer than 30 minutes in which a worker is relieved of all duties. 

Minor employees are owed 30-minute breaks after every five hours of consecutive work; this break time can be unpaid. Even if breaks are not required by law, many employers still choose to offer them. Giving workers time to relax can boost productivity and lessen burnout. 

Leaves of absence in Michigan

Leaves of absence give employees time off of work to attend to personal matters, including illness, caring for a family member, or welcoming a new child. Michigan law is more lax about requiring leaves of absence than other states. Employees are not entitled to the following types of leave in Michigan: 

• Sick leave
• Holiday leave
• Vacation leave
• Bereavement leave
• Parental leave
• Jury duty leave
• Voting leave

Though parental leave is not required in Michigan, federal law influences family leave. Under the Family and Medical Leave Act (FMLA), employers with 50+ employees must provide eligible employees with protected, unpaid leave to deal with certain medical and family issues.

Additionally, while jury duty leave isn’t provided, the employee’s job is protected during their service.

All employers must provide crime victim, military, military family, and Civil Air Patrol leave. Employers with 50+ employees must provide paid sick and safe leave (see more on that below).

Pregnancy disability leave in Michigan

While pregnancy disability leave is not specifically mandated in Michigan, the FMLA allows eligible employees up to 12 work weeks to deal with childbirth and serious health conditions, including complications from pregnancy. 

Paid sick leave in Michigan

Employers with fewer than 50 employees in Michigan do not need to provide sick leave. Those with 50+ employees do. Per the Paid Medical Leave Act (PMLA), employees can earn an hour of paid sick leave for every 35 hours they work, totaling up to 40 hours per year. They can use this time to deal with their own mental or physical treatment or that of a family member, matters of domestic violence relating to themselves or a covered family member, and public health emergencies.

With Rippling, you can automate and customize your leave policy—plus, you get full visibility into how employees are utilizing their leave.

Workplace safety in Michigan

In Michigan and throughout the US, employers are responsible for maintaining a safe working environment. This includes providing safe equipment, training employees on safety procedures, and implementing companywide safety policies. 

While federal laws protect employees from unsafe working conditions, The Michigan Occupational Safety and Health Administration (MIOSHA) monitors and enforces workplace health and safety. To be MIOSHA compliant, employers should conduct thorough worksite analysis to discover any risks, perform hazard prevention and control, lead health and safety training, and report workplace injuries or deaths.

Some states, including Michigan, are also required to develop Injury and Illness Prevention Programs (IIPP). These are proactive plans that inform employees of potential dangers or hazards in the workplace.

Additionally, any employer in Michigan with more than three employees needs to have workers’ compensation coverage. If you don’t want to pay upfront for the whole year, Rippling PEO offers a convenient pay-as-you-go workers’ comp plan—helping you scale your business stress-free in Michigan and elsewhere in the US.

Discrimination and harassment laws in Michigan

In addition to federal laws prohibiting discrimination in the workplace, Michigan has its own legal protections around employee discrimination and harassment.

Discrimination can manifest in unfair hiring practices, unequal pay, denial of promotions, or other biased treatment. Individuals should not be subject to unequal treatment solely due to their identity or background. Under the Elliott-Larsen Civil Rights Act, employers with even one employee in Michigan cannot discriminate based on:

• Race
• Color
• National origin
• Religion
• Age
• Sex
• Sexual orientation
• Pregnancy status
• Height or weight
• Marital status

Michigan also has specific pay discrimination laws. Under the Michigan Civil Rights Act, employers cannot compensate employees differently based on the protected qualities listed above–plus disability status and genetic information.

The Elliott-Larsen Civil Rights Act also encompasses sexual harassment. Harassment in the workplace is when bullying, offensive comments or gestures, unwelcome advances, or other actions create a sense of discomfort, fear, or humiliation. 

Sexual harassment training requirements vary by state. While Michigan does not specifically require sexual harassment prevention training in the workplace, it is recommended by the Equal Employment Opportunity Commission (EEOC). Training is especially important because employers aren’t only liable for the discrimination and harassment they commit; they’re also liable for the actions and words of their employees. Rippling’s Learning Management System comes pre-loaded with core sexual harassment training courses with specificities to meet any state requirements. 

Unions in Michigan

Labor unions can be defined as a group of employees who act collectively to advance fair or improved working conditions. This could include more time off, better benefits, or higher wages. According to the National Labor Relations Act (NLRA), employees nationwide have the right to:

• Unionize or join a union to negotiate with their employer
• Bargain collectively for changed work conditions by choosing employee representatives
• Work to improve conditions by filing complaints with their employer, government, or union representatives
• Discuss their employment terms and conditions, such as compensation or employee policies, with co-workers
• Strike and picket, if for valid reasons
• Refrain from joining a union

It’s against federal law for unions to threaten employees with job loss or other punishments if they don’t support unions. In the same vein, employers can’t prohibit, punish, or threaten employees who join unions.

Michigan has a "right-to-work" law, meaning that a worker’s union affiliation can’t impact their conditions of employment. This means that employees can’t be compelled to join or quit a labor organization; they must be able to participate in labor unions freely.

FAQs about Michigan labor and employment laws

Are independent contractors covered under Michigan employment laws?

No, independent contractors—also known as freelancers, self-employed individuals, gig workers, or contract workers—are not covered by Michigan’s employment laws. This means they are not owed minimum wage, overtime pay, or leave, as well as other employee protections. 

However, distinguishing between employees and independent contractors can be complicated. If full-time employees are found to have been incorrectly classified as contractors, they are owed employee protections. Want help with classification? Rippling’s free analyzer tool can help you determine whether you’re classifying workers correctly.

Does at-will employment exist in Michigan?

Yes. Michigan is a state with at-will employment. Unless employees are union members or have an employment contract stating otherwise, they can be terminated at any time, without notice, and without reason. Likewise, employees can quit without notice at any time. 

Note that employees cannot be wrongfully discharged or terminated for discriminatory purposes. Michigan has extra protection for employees with disabilities through the Persons with Disabilities Civil Rights Act.

What privacy rights do employees have in Michigan?

Employees have limited privacy rights in Michigan.

While employers can implement policies around monitoring calls, internet use, and emails on company-owned devices, employees are allowed to connect privately with coworkers on social networks and communicate privately on their own devices. The Bullard-Plawecki Employee Right To Know Act bans employers from nonconsensually gathering records about who an employee associates with, their political activities, their lifestyle, and any communications about non-work activities.

Are background checks legal in Michigan?

Yes, background checks are legal in Michigan, with some caveats and legal considerations.

Employees are allowed to seek information about job candidates by conducting their own background checks or working with a third-party provider—as long as they’ve obtained consent from the candidate.

Employers cannot ask job applicants about misdemeanor arrests without convictions, but they may ask about any convictions and felony arrests without a conviction. 

Are whistleblowers protected in Michigan?

Yes, whistleblowers are protected in Michigan under the Whistleblowers' Protection Act. Employers cannot terminate, threaten, discriminate against, or discipline employees for reporting violations or suspected violations to public bodies. 

Is workers’ compensation coverage required in Michigan?

It depends on the size of the employer. The following types of employers must carry workers’ compensation:

• Employers with three or more employees
• Employers with at least one employee who works 35+ hours per week for 13+ weeks over the span of a year

Some exemptions from workers’ compensation include farm laborers and freelance workers.

Are there required healthcare benefits in Michigan?

It depends on the size of the employer. Those with 50+ employees are required to provide healthcare to both employees and their dependents. Employers with less than 50 employees don’t have to provide health insurance, but Michigan incentivizes doing so with a small business healthcare tax credit.

Are Michigan employers required to provide bereavement leave?

No, employers are not required to provide bereavement leave in Michigan.

What employee protections are available in Michigan if layoffs occur?

Michigan employees have protections under federal law in cases of mass layoffs. The Worker Adjustment and Retraining Notification (WARN) Act mandates that employers with 100+ employees must provide 60 days’ notice before a mass layoff with some exceptions, such as layoffs caused by natural disasters or unforeseeable business circumstances. Laid-off employees are owed full payment and any applicable vacation time payouts (if they’re given vacation as part of their workplace policy).

Disclaimer: Rippling and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.