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Michigan's Minimum Wage and Overtime Law
This law covers:
- employers who employ 2 or more
persons 16 years of age or older, and
- certain employees in federally
covered businesses because the state minimum wage rate for those employees
will be higher than the federally required rate as of October 1, 2006.
- In situations where an employee is
subject to both the sate and federal minimum wage laws, the employee is
entitled to the higher of the two minimum wage rates.
Michigan's Minimum Wage :
|
Effective Date |
Minimum Hourly Wage Rate |
85% of Minimum Hourly Wage Rate |
|
October 1, 2006 |
$6.95 |
$5.91 |
|
July 1, 2007 |
$7.15 |
$6.08 |
|
July 1, 2008 |
$7.40 |
$6.29 |
- Provides an overtime rate for
non-exempt employees of 1 1/2 times the regular rate of pay.
- Minors under 18 years of age
may be paid 85% of the minimum hourly wage rate effective October 1, 2006.
- Permits tipped employees such as
food servers to be paid $2.65 per hour if they report receiving tips.
Tips, when combined with heir hourly wage rate, must equal the minimum
hourly wage rate. Written tip statements must be maintained by the
employer.
- Establishes training wage for
new employees ages 16 to 19 of $4.25 per hour for first 90 calendar days of
employment.
- Establishes compensatory time
provisions that allow an employee to accrue and use compensatory time in
lieu of overtime pay if certain conditions are met.
For this and further information visit:
www.michigan.gov
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