In Michigan, all employees must be paid a minimum wage of $7.40 per hour. Employers must also pay employees overtime that is equivalent to one-and-a-half times 'the employees regular pay rate for any hours worked past 40 hours in any seven-day period. However, certain salaried employees are exempt from this overtime provision. Employment law in Michigan is administered by the Department of Energy, Labor and Economic Growth.
The Department of Energy, Labor and Economic Growth (DELEG) requires any Michigan employer with more than two employees over the age of 16 to pay its employees overtime unless the employee qualifies as an exempt employee under the federal Fail Labor Standards Act (FLSA). The FLSA allows certain salaried employees to be exempt from overtime provisions due to the nature of their work and their salary. Under the FLSA, an employee who makes a salary of at least $455 per week and does not work in manual labor may be exempted from overtime pay. Typical exempt positions include executives, administrators, professionals and outside sales personnel.
All employers are exempt from having to pay double time or triple time on holidays. Michigan employers are not obligated to pay employees at a higher rate for working on a holiday.
In certain situations, employers may elect to give an employee additional compensatory time-off instead of paying overtime rates. All Michigan employers are permitted to pay in comp time unless they are a hospital or health care facility, a pre-school or other educational institutions, the federal, state or local government, an agricultural employer or a business with a gross annual revenue exceeding $500,000 yearly. Additionally, employers who do not regularly provide employees with ten paid days of leave each year are not permitted to pay in comp time.
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