Overtime Pay Rules in Michigan: Who Qualifies & What You Earn

The federal Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., requires covered employers to pay nonexempt employees overtime compensation at not less than 1.5 times the employee's regular rate of pay for all hours worked over 40 in a workweek. The FLSA applies to employers engaged in interstate commerce or whose annual gross volume of sales or business is not less than $500,000. The U.S. Department of Labor (DOL) enforces the FLSA and uses a "regular rate" calculation that includes all compensation earned during the workweek, divided by hours worked, then multiplied by 1.5 for hours over 40.

Certain employees are exempt from overtime requirements, including executive, administrative, and professional employees (EAP exemptions) who meet specific duties tests and earn at least $684 per week as of 2024 (adjusted annually). Employees in certain industries—such as railroad, airline, and agricultural workers—may have different overtime rules. The FLSA does not require daily overtime; only workweek totals matter. Employees must be paid for all overtime worked, and employers cannot avoid the requirement through agreement or classification. The DOL Wage and Hour Division investigates complaints and can assess unpaid wages, liquidated damages equal to unpaid wages, and civil penalties.

Michigan's Minimum Wage Act (MMWA), MCL 408.384, incorporates the federal FLSA overtime standard by reference. Specifically, Michigan requires that employees receive overtime compensation at 1.5 times the regular rate for all hours worked over 40 in a workweek. Michigan does not provide protections beyond the FLSA; the state law is essentially equivalent to federal law for overtime purposes, not stronger.

Michigan's MMWA covers most private employers with no specific employee-count threshold, whereas the federal FLSA requires an employer to have $500,000 in annual gross revenue or be engaged in interstate commerce. This means some very small Michigan employers with under $500,000 in revenue may still be covered by Michigan's MMWA for overtime, though this is rare in practice. Michigan also covers most government and public employees under its wage and hour laws, whereas the FLSA has broader exemptions for certain public employees.

Michigan's regular rate calculation mirrors the FLSA: all compensation paid during the workweek (excluding certain statutory exclusions like gifts, discretionary bonuses, and certain reimbursements) is divided by hours worked and then multiplied by 1.5 for hours exceeding 40. Michigan recognizes the same exempt categories as the FLSA—executive, administrative, professional, computer, and outside sales employees—using the same duties tests and salary thresholds. The state does not provide daily overtime (e.g., over 8 hours in a day); only workweek totals trigger the overtime requirement. Remedies under Michigan law include unpaid overtime wages, and the employee may pursue claims through the Michigan Department of Labor and Economic Opportunity (MDLOE) wage complaint process or through private litigation. Penalties for wage theft are civil only under state law, though federal FLSA provides both civil and, in egregious cases, criminal enforcement.

Exempt employees under the EAP exemptions (Executive, Administrative, Professional, Computer, and Outside Sales) are not entitled to overtime pay if they satisfy both the duties test and the salary threshold (minimum $684/week as of 2024). The duties test is strict: executives must have primary duty of managing the enterprise or department and supervise at least two full-time employees; administrators must perform office/non-manual work directly related to management operations; professionals must perform work requiring advanced knowledge in a recognized field and have a primary duty applying that knowledge. These exemptions are construed narrowly by Michigan courts and the DOL.

Certain employees are categorically exempt: federal, state, and local government employees (partial exemption); railroad, airline, and motor carrier employees (subject to separate rules); and certain agricultural workers under specific conditions. Commissioned salespersons may be exempt under limited circumstances if at least 50 percent of compensation is commissions and they work outside the employer's usual place of business.

Michigan law does not require overtime for employees who work over 8 hours in a single day (unlike some states such as California); only workweek totals trigger overtime. Compensatory time off ("comp time") is not a permissible substitute for overtime pay in the private sector under either Michigan or federal law; employers must pay overtime wages in money. Independent contractors are not covered; the IRS "ABC test" and common-law control factors determine contractor status. Voluntary shift trades or understaffing do not excuse the employer from paying overtime; the law applies regardless of reason for long hours. Collective bargaining agreements can provide overtime rates higher than the legal minimum but cannot waive the 1.5x requirement.

Step 1: Document Everything. Keep detailed records of all hours worked—clock in/out times, timesheets, emails, texts, or handwritten notes showing when you worked. Save pay stubs showing gross pay, hours worked, and any deductions. Photograph timecards if the system will delete records. Record the dates, times, and content of any conversations with managers about overtime or pay. If you have electronic access to your timesheet, take screenshots. Create a spreadsheet showing expected overtime hours worked, the hours your employer reported, and the difference. Calculate your expected overtime pay: (regular hourly rate × 1.5) × overtime hours owed.

Step 2: Initiate Internal Complaint. Request a meeting with your manager or HR in writing (email preferred) stating that you believe you have not been paid for overtime hours worked. Cite specific dates and hours. Ask the employer to review your timesheets and provide written confirmation of how overtime was calculated. Keep a copy of this request and any response. Some employers will correct the error at this stage; if so, ensure the payment is issued and do not destroy documentation. If the employer denies owing overtime or does not respond within 1-2 weeks, proceed to external filing. Do not resign over this issue—doing so may complicate your unemployment claim and weaken any retaliation claim.

Step 3: File a Wage Complaint with Michigan MDLOE. Visit mdloe.info or call (517) 335-9474 to request a Wage Complaint Form (WH-108). You have up to 1 year from the violation date to file (or 3 years if the violation was willful—e.g., the employer deliberately misclassified you or ignored your overtime hours). Include in your complaint: employer's name and address, dates of unpaid overtime work, hours worked and overtime hours owed, your regular hourly rate, description of your job duties, and your contact information. File either online, by mail to Michigan Department of Labor & Economic Opportunity, Wage & Hour Division, P.O. Box 30015, Lansing, MI 48909, or in person at a local MDLOE office. There is no filing fee. The MDLOE will send a copy to the employer and investigate.

Alternatively or concurrently, you can file a charge with the U.S. Department of Labor Wage and Hour Division (if the employer meets FLSA coverage thresholds). The federal filing deadline is 2 years from violation (3 years if willful). You can file online at usdol.gov/agencies/whd or visit the Detroit or Michigan regional office. The federal FLSA also allows private lawsuits without filing an administrative claim first, though administrative claims create a record and may be resolved faster.

Step 4: Expect Investigation and Timeline. Once the Michigan MDLOE receives your complaint, it typically takes 2-8 weeks for an investigator to contact you and the employer. The investigator will request payroll records, timesheets, and your employment agreement. You may be asked to provide written or recorded statements and detailed time records. The employer will be given an opportunity to respond. If the MDLOE finds a violation, it will issue a Notice of Violation and order the employer to pay unpaid overtime wages plus interest (calculated from the date owed). The process typically takes 2-4 months but can extend longer if the employer contests. Do not be alarmed if contact is infrequent; the investigator is gathering evidence.

Step 5: Consult an Employment Attorney. If your unpaid overtime exceeds $5,000 or involves multiple employees (potential class action), or if the employer retaliates after you file, hire an attorney immediately. Many Michigan employment attorneys work on contingency (no upfront cost; they collect a percentage of winnings). Bring all documentation from Steps 1-4. An attorney can file a private FLSA lawsuit, which allows recovery of unpaid wages, liquidated damages (equal to unpaid wages), and attorney's fees. Federal court suits can be filed in the U.S. District Court for the Eastern or Western District of Michigan. For retaliation claims (e.g., termination after filing), an attorney can pursue a claim under the Whistleblower protections in Michigan's Minimum Wage Act (MCL 408.301) or federal FLSA retaliation prohibitions. If the employer is solvent and has assets, private litigation often recovers more than administrative claims.