Michigan Overtime laws & HR compliance analysis

Michigan Overtime: What you need to know

The Fair Labor Standards Act (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.
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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 (or 216 per 28 workdays for police, fire, and corrections officers; 80 per 14 workdays for employees of residential care facilities). (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).
A “workweek” is defined as a period of 7 consecutive days. The law requires that each workweek stand alone, and “averaging” hours over 2 or more weeks is prohibited. Under Michigan law, employers are required to establish each employee's workweek and indicate the beginning time and day of the workweek. This must be recorded in the employee's personnel file. Once established, the workweek remains fixed and is intended to be permanent.
Michigan law exempts anyone employed in a bona fide executive, administrative, or professional capacity (MI Stat. Sec. 408.384a).
The Michigan overtime law also does not apply to an employee who:
• Holds a public elective ...

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