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.
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 it | At or above the minimum |
| Overtime: none this week | $0 |
| Paid sick leave earned in a year | 69 hours |
| Breaks owed in a 8-hour shift | None for adults (minors only) |
| Final paycheck if fired | on the regular scheduled payday for the pay period in which the discharge occurs |
| Unused vacation at the end | Paid out if the employer policy or contract says so |
| Paid family leave | No 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 |
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
| Rate | 1 hour per 30 hours worked |
| Cap (typical employer) | 72 hours |
| Weeks to earn one 8-hour day | 8.0 |
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
| From | Who it covers | Rate | Note |
|---|---|---|---|
| January 1, 2026 | Statewide (employers with 2+ employees aged 16+) | $13.73 | Raised from $12.48 under the Improved Workforce Opportunity Wage Act schedule |
| January 1, 2027 | Statewide | $15.00 | Set 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