Michigan Exempt Personnel: What you need to know

The FLSA is a federal law that sets minimum wage and overtime requirements for virtually all enterprises involved in interstate commerce. FLSA applies in all states, but it permits states to enact laws that are more generous to employees and to regulate in the rare cases in which federal law does not apply. Where state law and federal law conflict, employers must follow the law that is more generous to the employee.
Michigan's overtime law is similar to the federal FLSA and covers employers not covered by the federal law. Employees must receive 11/2 times their regular pay rate for hours worked in excess of 40 in a workweek (MI Stat. Sec. 408.384a). As in the federal law, there is no requirement that overtime be paid for hours worked in excess of 8 per day or on weekends or holidays (although union contracts often require overtime pay for such work).
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Michigan law exempts anyone employed in a bona fide executive, administrative, or professional capacity, earning a salary of at least $250 per week, from state overtime pay requirements (MI Stat. Sec. 408.384a; MI Admin. Code Rule 408.701).When an employer is choosing to apply either state or federal law, the employer must apply the law that is most beneficial to the employee.
In Michigan, an executive employee is defined as an employee:
• Whose primary duty is management; and
• Who supervises two or more employees.
In Michigan, an administrative employee is an employee whose primary duty is nonmanual work directly related to management policies or general business operations or the administration of an educational institution.
In Michigan, a professional employee is an employee whose primary ...

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