Overtime Labor Law Governing Michigan

Michigan law makes it pretty clear who gets overtime and who doesn’t get overtime pay in the state. So let’s take a closer look and see exactly where the line is drawn.

For starters, it’s important for us to know where Michigan law starts and where federal laws end. The federal overtime law, part of the Fair Labor Standards Act of 1938, states that certain businesses are held accountable to this law.

Employers who make goods or sell services outside of Michigan and any company that makes more than $500,000 in annual revenues are covered under the federal law, and not Michigan’s state overtime laws.

Interestingly enough, also included in the federal law are any domestic service workers, day workers, babysitters, groundskeepers, and the like who earn $50 or more in cash as pay in a quarter of the year, or who work more than 8 hours a week at their job. Federal law also covers hospitals, schools, large agricultural firms, and all government offices.

Now onto the Michigan law, which covers all the rest. Or to be more specific, the Michigan law covers employers who employ 2 or more workers who are age 16 or older, as well as any industry where the state minimum wage is higher than the federal minimum wage.

Not only do the Michigan state labor laws cover the issues of minimum wages, and make sure that employees who work more than 40 hours a week get time and a half pay for each minute over 40 hours spent working. They also set wages for tipped employees, or trainee employees.

Michigan’s overtime law also allows employees to use their overtime as compensatory time, instead of forcing them to collect special pay all the time for it. This is one of facets that makes Michigan law different than other states.