Michigan Overtime Laws for Hourly Employees (2026)

The rule

	Michigan
Weekly threshold	Over 40 hours in a 7-day workweek: not less than 1.5 times the regular rate (MCL 408.934a)
Daily threshold	None. Overtime is counted by the workweek
Employer coverage	Employers with 2 or more employees 16 years of age and older. Employers subject to both state and federal law follow the stricter standard
Exemptions	Employees exempt from FLSA minimum wage, bona fide executive, administrative, and professional employees, elected officials and appointees, employees of amusement or recreational establishments open less than 7 months a year, and agricultural employees
Comp time	Allowed at not less than 1.5 hours per overtime hour, but only under a written plan, an express voluntary written request from the employee before the overtime is worked, at least 10 paid leave days a year, and a 240-hour accrual cap (MCL 408.934a)
Minimum wage	$13.73 an hour from January 1, 2026; $15.00 from January 1, 2027

How Michigan's rule tracks the federal one

The state threshold and rate match the FLSA: 1.5 times the regular rate for hours over 40 in a 7-day workweek. Michigan's Wage and Hour Division confirmed that the 2025 changes to the minimum wage law did not change the overtime requirement. Where the state and federal rules differ, the employer follows whichever is stricter for the employee.

Michigan is unusual in allowing private-sector compensatory time. MCL 408.934a lets an employee take comp time at not less than 1.5 hours for each overtime hour instead of cash, but the conditions are strict: the employer must give at least 10 days of paid leave a year, the option must be offered in a written plan (or a collective bargaining agreement), the employee must make an express, voluntary written request before the overtime is worked, nobody can be required or pressured to take it, accrual is capped at 240 hours, and the employee can cash it out on 30 days' notice or at termination at the regular rate. Employers that cannot meet every condition should pay overtime in cash.

Worked example: a 20-person auto repair shop

A technician paid $26 an hour works 9, 9, 9, 9, and 9 hours: 45 hours in the 7-day workweek.

The 9-hour days earn nothing on their own; Michigan has no daily overtime.
40 hours at $26: $1,040. 5 hours at $39 (1.5 times $26): $195. Gross: $1,235.
If the shop had a written comp time plan that meets the statute and the technician had asked in writing for comp time before working the overtime, he could instead bank 7.5 hours (5 times 1.5) of paid time off. Without that, the $195 is owed in cash.

How to track it

Michigan overtime is decided by the weekly total, so the time clock's workweek must match payroll's and every paid minute has to be captured, including short breaks and work done before the first job of the day. Comp time, where used, needs its own ledger tied to the overtime hours it replaced.

ClockOut shows week-to-date hours on every punch, flags employees projected to pass 40 before the schedule ends, and limits clock-ins to the scheduled window so a 40-hour schedule does not become 43 hours of early arrivals.

Michigan overtime FAQ

Does Michigan have daily overtime?

No. The Improved Workforce Opportunity Wage Act requires overtime only for hours over 40 in a 7-day workweek.

Can a Michigan employer offer comp time instead of overtime pay?

Yes, but only under the conditions in MCL 408.934a: a written plan, an express voluntary written request from the employee before the overtime is worked, at least 10 paid leave days a year, no pressure to accept, a 240-hour cap, and cash-out at the regular rate on request or at termination. Otherwise overtime is paid in cash.

Which employers does Michigan's overtime law cover?

Employers with 2 or more employees who are 16 years of age or older. Many of those employers are also covered by the FLSA, in which case the stricter rule applies.

Who is exempt from overtime in Michigan?

Employees exempt from FLSA minimum wage provisions, bona fide executive, administrative, and professional employees, elected officials and political appointees, employees of amusement or recreational businesses open less than 7 months a year, and agricultural employees.

Sources, checked September 9, 2026

This is general information, not legal advice. Rules change; check the linked source.