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MI · state labor law, 2026

Michigan labor laws: minimum wage, overtime, leave, final pay and breaks

Michigan is in the middle of a wage schedule set by statute, has a new sick time law in force since 2025 and ended its right-to-work law in 2024.

Michigan and federal rules checked on official sources on · Checked by Radif Partners · How we calculate

Minimum wage now
$13.73/h
statewide
From January 1, 2027
$15.00/h
announced rate
Tipped cash wage
$5.49/h
tips must make up the rest
Overtime
40 h/week
state law
Paid sick leave
1 h per 30 h
cap 72 h a year
Paid family leave
no program
FMLA is unpaid

Michigan's minimum wage is $13.73 an hour in 2026 for employers with two or more employees aged 16 and over, and the statutory schedule takes it to $15.00 on January 1, 2027. For a full-time worker, that next step is worth about $2,642 a year. Tipped employees can be paid $5.49 an hour in cash, 40 percent of the minimum, as long as tips make up the rest; that share rises each year. Overtime is time and a half after 40 hours in a workweek. Since February 21, 2025, the Earned Sick Time Act gives one hour of paid sick time for every 30 hours worked, usable up to 72 hours a year at larger employers and 40 at small businesses. Michigan has no paid family leave program and no break law for adults, and it is no longer a right-to-work state.

State

Michigan

Before taxes, without tips.

Gross pay for this week in Michigan

$549

Time and a half after 40 hours in a week

Minimum wage in Michigan now$13.73 an hour
Your rate against itAt or above the minimum
Overtime: none this week$0
Paid sick leave earned in a year69 hours
Breaks owed in a 8-hour shiftNone for adults (minors only)
Final paycheck if firedon the regular scheduled payday for the pay period in which the discharge occurs
Unused vacation at the endPaid out if the employer policy or contract says so
Paid family leaveNo state program

40 hours a week at $13.73. State rule applied. Minimum wage, overtime and leave rules have exceptions by employer size and industry. How this is calculated.

A wage schedule written into law

Michigan's increases come from the Improved Workforce Opportunity Wage Act, whose schedule the Department of Labor and Economic Opportunity publishes in advance. The rate went from $12.48 to $13.73 in January 2026 and will reach $15.00 in January 2027. The tipped wage climbs at the same time, as a rising share of the full minimum: 40 percent in 2026, 42 percent in 2027 and more after that. Two groups have lower floors. Minors aged 16 and 17 may be paid 85 percent of the minimum, and employers may pay a training wage of $4.25 to new hires under 20 for their first 90 days.

What the minimum wage raise is worth to you

Next rate in Michigan

$15.00

Rate on January 1, 2026$13.73
Rate in force now$13.73
Extra pay a year since January$0
Extra pay a year at the next rate$1,981
See every state rate →

Earned sick time, now for nearly everyone

The Earned Sick Time Act took effect for employers with 11 or more employees on February 21, 2025, and small businesses with 10 or fewer started accruing on October 1, 2025. The rule is one hour for every 30 hours worked. A full-time worker earns about 69 hours over a year, of which a larger employer may cap use at 72; a small business can cap use at 40. Michigan has no paid family leave insurance, so longer absences fall under the federal FMLA if you qualify.

Sick leave you earn in a year

Hours earned in a year

52

Rate1 hour per 30 hours worked
Cap (typical employer)72 hours
Weeks to earn one 8-hour day8.0
Your state page →

Overtime under the Michigan act

The state act copies the federal threshold: time and a half after 40 hours in a fixed workweek of seven days, with no daily overtime. An assembler paid $18 who works five 9-hour shifts is owed 5 hours at time and a half, $27.00 an hour, for $855 that week. Michigan has no salary level of its own for exempt jobs, so the federal $684 a week applies, together with the federal duties tests. Employers with fewer than two employees aged 16 or older fall outside the state act, though the federal law may still cover them.

The end of right-to-work

Michigan's private-sector right-to-work law was repealed and the repeal took effect in 2024, so a union contract covering private-sector workers may again require a fee as a condition of employment. The list of right-to-work states shows where the rule still applies.

Paychecks, vacation and breaks

When a job ends, by dismissal or resignation, wages are due on the regular payday for the pay period in which the job ended. Vacation is a fringe benefit under Michigan law, paid out only if the written policy or contract says so. Adults have no statutory meal or rest break; workers under 18 cannot work more than five hours without a documented 30-minute break. For other states' break rules, see break laws by state.

Michigan employment rules at a glance, 2026

Minimum wage schedule

Michigan minimum wage rows for 2026 and any announced 2027 rate. The state act covers employers with 2 or more employees aged 16 and older.
FromWho it coversRateNote
January 1, 2026Statewide (employers with 2+ employees aged 16+)$13.73Raised from $12.48 under the Improved Workforce Opportunity Wage Act schedule
January 1, 2027Statewide$15.00Set in the statutory schedule published in the LEO FAQ; tipped $6.30 (42%), minors $12.75

Workers covered by both laws get the higher rate. Minors 16-17: 85% of minimum ($11.67 in 2026). Training wage $4.25/hour for new hires under 20 during their first 90 days. Read the Michigan rule.

Overtime

Time and a half after 40 hours in a week. The salary test for exempt employees is the federal $684 a week. Time and a half after 40 hours in a 7-day workweek. source

Sick leave and family leave

Paid sick leave: 1 hour for every 30 hours worked (Employers with 11+ employees: use may be capped at 72 hours a year. Small businesses (10 or fewer employees): use may be capped at 40 hours a year; accrual started October 1, 2025.), all employers. Earned Sick Time Act (ESTA), effective February 21, 2025 for employers with 11+ employees and October 1, 2025 for small businesses. source

No state paid family leave insurance: the federal FMLA gives eligible workers up to 12 weeks of unpaid, job-protected leave.

Final paycheck and unused vacation

Fired or laid off: on the regular scheduled payday for the pay period in which the discharge occurs. Quitting: on the regular scheduled payday for the pay period in which the employee quits. Vacation: Vacation is a fringe benefit paid out only if the written contract or policy provides for it.. source vacation rule

Meal and rest breaks

No meal break is required for adults by state law. No paid rest break is required for adults. Employees under 18 may not work more than 5 hours without a documented 30-minute uninterrupted break. source

Unions and dismissal

Michigan has no right-to-work law, so a union contract may require a fee from the workers it covers. Employment is at will: either side may end it at any time, except for an illegal reason such as discrimination or retaliation, or against a contract. source

Also worth knowing in Michigan

  • Minimum wage reaches $15.00 on January 1, 2027; the tipped wage rises from 40% of the minimum in 2026 to 42% in 2027 and keeps rising in later years. source
  • Earned Sick Time Act: small businesses (10 or fewer employees) had to start accruals on October 1, 2025. source
  • Michigan is no longer a right-to-work state: the private-sector right-to-work law was repealed (effective 2024). source

Questions people ask

When does Michigan minimum wage go to $15?

On January 1, 2027, under the schedule of the Improved Workforce Opportunity Wage Act. The rate is $13.73 until then. The tipped cash wage rises at the same time, from 40 to 42 percent of the minimum. Minors aged 16 and 17 may still be paid 85 percent of the full rate.

How many sick hours do Michigan employees get?

Employees earn one hour of paid sick time for every 30 hours worked under the Earned Sick Time Act. Employers with 11 or more employees may cap use at 72 hours a year; small businesses with 10 or fewer may cap it at 40 hours. Small businesses began accruing on October 1, 2025, larger employers on February 21, 2025.

Is Michigan still a right-to-work state?

No. The private-sector right-to-work law was repealed, with effect in 2024. A union contract may again require workers it covers to pay a fee as a condition of employment. Public employees are governed by separate rules. Michigan remains an at-will state, so jobs can be ended without cause unless a contract or a law says otherwise.

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Official sources for this page

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Publisher of the state-by-state guide to US employment law: minimum wage, overtime, leave, final pay and breaks

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General information, not legal advice: the calculators apply the published federal and state rules to the numbers you enter. Union contracts, local ordinances, industry wage orders and exemptions can change the answer; the state labor agency decides a wage claim.

Federal and state employment rules for 2026, checked on official sources on