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Employer guide · Reviewed October 2026

Michigan HR laws for employers (2026)

The Michigan rules employers ask about most: minimum wage, overtime, final pay, unused vacation, paid sick leave and breaks.

$13.73minimum wage per hour
Yesstatewide paid sick leave
Depends on policyunused vacation payout at separation

Michigan employment law at a glance

Minimum wage$13.73 per hour
Tipped cash wage$5.49 per hour
OvertimeNo daily overtime; 1.5x after 40 hours per week.
Final pay when firedBy the regularly scheduled payday for the pay period in which the termination occurs (hand-harvest crop workers: within 1 working day). Verify
Final pay when an employee quitsBy the regularly scheduled payday for the pay period in which the termination occurs. Verify
Unused vacation / PTO at separationNot required unless the employer's written policy or contract provides for it (enforced as a fringe benefit under the Payment of Wages and Fringe Benefits Act).
Paid sick leaveYes (Earned Sick Time Act, eff. Feb 21, 2025; small employers Oct 1, 2025): 1 hour per 30 hours worked; employers may cap use at 72 hours/year (40 hours/year for employers with 10 or fewer employees).
Meal breaksNo state requirement for adult employees.
Rest breaksNo state requirement for adult employees.

Minimum wage note: $13.73/hour since Jan 1, 2026 (applies to employers with 2+ employees). Scheduled to rise to $15.00 on Jan 1, 2027, then adjusted annually by formula.

Verify means we could not confirm that item from an official Michigan or US Department of Labor source, so check it with the state before relying on it.

Other Michigan rules to know

  • Tipped cash wage percentage increases every Jan 1 through 2031 (50% of minimum wage).
  • Earned sick time carryover: accrual-method employers must allow carryover up to the use cap (72 or 40 hours); front-loading employers need not allow carryover.

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Frequently asked questions

What is the minimum wage in Michigan in 2026?

$13.73 per hour, effective January 1, 2026. $13.73/hour since Jan 1, 2026 (applies to employers with 2+ employees). Scheduled to rise to $15.00 on Jan 1, 2027, then adjusted annually by formula.

When is a final paycheck due in Michigan?

If the employer ends employment: By the regularly scheduled payday for the pay period in which the termination occurs (hand-harvest crop workers: within 1 working day). If the employee quits: By the regularly scheduled payday for the pay period in which the termination occurs.

Does Michigan require paying out unused vacation?

Not required unless the employer's written policy or contract provides for it (enforced as a fringe benefit under the Payment of Wages and Fringe Benefits Act).

Is paid sick leave required in Michigan?

Yes (Earned Sick Time Act, eff. Feb 21, 2025; small employers Oct 1, 2025): 1 hour per 30 hours worked; employers may cap use at 72 hours/year (40 hours/year for employers with 10 or fewer employees).

Sources

HR laws in other states

This page is general information for employers, not legal advice. Employment laws change and can vary by city and county. Confirm details with the state labor department or an employment attorney. Read our disclaimer.

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