Michigan Overtime Laws 2026: Pay Rates, Minimum Wage & Auto Worker Rules

Michigan Overtime Pay Rules in 2026

Michigan follows the federal 40-hour workweek standard under the Improved Workforce Opportunity Wage Act (IWOWA) and the FLSA. There is no daily overtime in Michigan — overtime kicks in only after 40 hours in a single workweek.

After the Michigan Supreme Court's Mothering Justice v. Attorney General ruling, the state minimum wage rose to $12.48/hour on February 21, 2026, with a scheduled climb to $14.97/hour by 2028.

2026 Michigan Overtime Rate Quick Reference

| Hourly rate | Overtime rate (1.5×) | 10 OT hours/week |

|---|---|---|

| $12.48 (min wage) | $18.72 | $187.20 |

| $18.00 | $27.00 | $270.00 |

| $25.00 | $37.50 | $375.00 |

| $35.00 | $52.50 | $525.00 |

| $45.00 | $67.50 | $675.00 |

Use our Michigan Overtime Pay Calculator for an exact paycheck breakdown.

Who Is Covered Under Michigan Law

IWOWA covers employers with 2 or more employees. The federal FLSA covers employers engaged in interstate commerce or with $500,000+ in annual revenue. Most Michigan workers are dual-covered, and whichever law gives the higher protection applies.

Exempt categories mirror the FLSA: bona fide executive, administrative, professional, outside sales, and certain computer employees earning above the 2026 federal threshold of $684/week ($35,568/year).

Tipped Employees in Michigan

Michigan's tipped cash wage rose to $4.74/hour in February 2026 (38% of full minimum wage), with the tip credit shrinking each year until full elimination is scheduled in 2031. Tipped overtime must be calculated on the full $12.48 minimum wage — not the $4.74 cash wage.

OT formula for tipped servers: ($12.48 × 1.5) − $7.74 tip credit = $11.04/hour cash OT.

See our tipped employee overtime guide for the full breakdown.

Auto Industry & Manufacturing Overtime

Michigan's automotive and parts-manufacturing sector employs over 170,000 hourly workers subject to overtime. Standard UAW master agreements at GM, Ford, and Stellantis include:

• 1.5× pay after 40 hours weekly (FLSA floor)
• 2× pay (double time) on Sundays and the 7th consecutive day
• 2.5× pay on contractually designated holidays
• Shift differential of 5–10% for second and third shifts, included in the regular rate for OT calculation

Non-union plants must still follow FLSA — meaning Sunday or holiday work pays only 1.5× unless an employer policy says otherwise.

Mandatory Overtime in Michigan

Michigan has no general cap on mandatory overtime hours for private-sector employees. The only protected groups are:

• Registered nurses under the Michigan Public Health Code, who may refuse mandatory OT in non-emergency situations
• Public safety personnel under collective bargaining agreements
• Minors under 18 under Michigan's Youth Employment Standards Act (limited to 48 hours/week)

Paid Sick Leave + Overtime Interaction

Under the 2026 Earned Sick Time Act (ESTA) restoration, employees accrue 1 hour of paid sick leave per 30 hours worked, capped at 72 hours/year at employers with 10+ workers. Paid sick leave hours do not count toward the 40-hour overtime threshold — only hours actually worked do.

Michigan-Specific Wage Theft Recovery

Workers can recover unpaid overtime through:

• The Michigan Department of Labor and Economic Opportunity (LEO) Wage and Hour Division (free, 3-year lookback)
• A private FLSA lawsuit (2-year lookback, 3 years if willful, plus liquidated damages)
• Michigan Payment of Wages and Fringe Benefits Act claims (up to 2× the unpaid amount as damages)

FAQ

Does Michigan require daily overtime after 8 hours?

No. Michigan follows the federal 40-hour weekly standard. Daily overtime exists only in CA, AK, NV, CO, and a few other states — see our state overtime laws comparison.

Do salaried employees in Michigan get overtime?

Only if they earn below $684/week OR don't meet the FLSA duties test for executive, administrative, or professional exemption. Read exempt vs non-exempt employees.

How are shift differentials taxed?

Shift differentials are taxed as regular wages and must be added to the regular rate before the 1.5× multiplier — boosting your effective OT rate.

Does the 2026 No Tax on Overtime deduction apply in Michigan?

Yes — Michigan residents can deduct up to $12,500 ($25,000 joint) in qualified OT premiums on their federal return. Michigan state income tax (4.05% flat) still applies. See How Overtime Is Taxed 2026.