Michigan Labor Laws 2026: Complete HR Compliance Guide

Accurate as of May 2, 2026. This guide is informational and not legal advice. For specific situations, consult licensed Michigan employment counsel.

Michigan rebuilt its sick leave and minimum wage framework in early 2025 after a Michigan Supreme Court decision sent the original ballot initiatives back into effect. The state minimum wage hit $13.73 on January 1, 2026 and is scheduled to reach $15.00 on January 1, 2027. The Earned Sick Time Act (ESTA), Public Act 2 of 2025, replaced the older Paid Medical Leave Act and now reaches every employer in the state, with paid sick time accrual at one hour per 30 worked. The Elliott-Larsen Civil Rights Act, expanded in 2023 to cover sexual orientation and gender identity, applies to almost every Michigan workplace. Layered on top sit Michigan's distinctive whistleblower statute (with one of the country's shortest statutes of limitations), the federal pregnancy and disability laws, and the state's reasonableness-based non-compete regime.

This guide covers what HR teams running people in Michigan need on hand for 2026: the wage and hour rules under the Improved Workforce Opportunity Wage Act and ESTA, the protected categories under Elliott-Larsen, the Whistleblowers' Protection Act and its 90-day filing deadline, the cannabis posture under the Michigan Regulation and Taxation of Marihuana Act, the economic-realities classification test, the federal WARN obligations (Michigan does not have a state mini-WARN), and the workers' compensation rules under the Workers' Disability Compensation Act. The aim is to be more useful than a state-bar alert and more current than the LARA FAQs.

Compliance-heavy states like Michigan reward HR teams that document early and consolidate employee relations work in one place. If that maps to where your team is heading, an HR case management platform built for ESTA and Elliott-Larsen workflows is worth a closer look.

The 2026 Michigan Employment Law Updates HR Teams Should Know First

Several Michigan-specific items took effect on January 1, 2026 or remain in active rollout. The headline list below gets full treatment further down. Read the headlines, then jump to the section that matters to your operation.

Minimum wage moved to $13.73 on January 1, 2026, with the next statutory increase to $15.00 on January 1, 2027 and CPI-Midwest adjustments thereafter.
Tipped minimum cash wage rose to $5.49 (40% of full minimum), continuing a multi-year schedule that lifts the tipped percentage incrementally toward 50% by 2031.
Earned Sick Time Act (ESTA) in full effect for every employer. Large employers (more than 10) must provide 72 hours of paid sick time per year; small employers (10 or fewer) must provide 40 hours.
Three-year ESTA statute of limitations with a private right of action and damages including back pay, reinstatement, and an additional civil penalty equal to eight times the employee's normal hourly wage for each violation.
Elliott-Larsen Civil Rights Act codified sexual orientation and gender identity as protected classes effective March 31, 2024 and (separately) prohibits discrimination based on hair texture and protective hairstyles under the CROWN Act.
MIOSHA continues to operate Michigan's state OSHA plan with state-specific standards in construction and general industry.
Whistleblowers' Protection Act remains in force with its 90-day statute of limitations. Documentation discipline matters more in Michigan than in most other states because of the short window.

Each item gets a full treatment below, with the bill numbers, statutes, and dollar amounts you need to brief your leadership and update your policies.

Michigan Minimum Wage in 2026

Michigan's minimum wage rose to $13.73 per hour on January 1, 2026. The increase is the latest step in a schedule installed when the legislature amended the Improved Workforce Opportunity Wage Act in February 2025 after the Michigan Supreme Court ruled that the legislature's earlier "adopt-and-amend" maneuver had been unconstitutional.

The Michigan Department of Labor and Economic Opportunity (LEO) administers the rate and updates the required minimum wage poster annually.

Where is the Michigan minimum wage headed next?

The current statutory schedule:

January 1, 2026: $13.73 per hour
January 1, 2027: $15.00 per hour
January 1, 2028 and after: annual adjustments based on the Consumer Price Index for the Midwest region, calculated by the State Treasurer each October for the following year

After the $15.00 floor lands in 2027, the rate is scheduled to track inflation. HR teams running multi-state payroll should set calendar reminders 60 days ahead of each January 1 increase to update pay rates and audit any employees whose salaried compensation is approaching the FLSA exempt salary threshold.

What is the Michigan tipped minimum wage in 2026?

The tipped minimum cash wage moved to $5.49 per hour on January 1, 2026, set at 40% of the full minimum wage. The tipped percentage is scheduled to step up annually, reaching 50% of the standard minimum wage by 2031.

2026: $5.49 cash, with employers claiming a tip credit to reach the full $13.73
2027: tipped percentage rises to 42% of the new $15.00 minimum (approximately $6.30)
Future years: tipped percentage continues stepping up to 50% by 2031

If tips do not bring the employee to the full minimum wage, the employer must make up the difference. Minimum wage compliance audits in Michigan restaurants should run quarterly given the changing percentages.

Are there local minimum wages in Michigan cities?

No. Michigan preempts local minimum wage ordinances, which means Detroit, Grand Rapids, Ann Arbor, and other major cities cannot set their own higher rates. The state floor applies everywhere.

Michigan Overtime Rules

Michigan generally follows the federal Fair Labor Standards Act for overtime calculation, exemption analysis, and enforcement. The state Improved Workforce Opportunity Wage Act incorporates the federal standard rather than imposing a separate state overtime regime.

When is overtime owed?

Non-exempt employees must receive 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. Michigan does not have a daily overtime threshold like California's 8-hour rule. Workweek definitions, regular rate calculations, fluctuating workweek arrangements, and bonus inclusion all track FLSA case law.

What is the Michigan overtime rate at the new minimum wage?

A non-exempt employee paid at the $13.73 minimum earns $20.60 per hour for any hour over 40 in a workweek. When the rate moves to $15.00 on January 1, 2027, the overtime rate becomes $22.50.

Michigan exemption status under the FLSA white-collar tests follows the federal salary basis and duties tests. Re-audit borderline exempt employees whenever the federal salary threshold changes. Overtime classification mistakes generate some of the largest single-employer wage and hour settlements in the state.

Michigan Earned Sick Time Act (ESTA)

The Earned Sick Time Act, codified as Public Act 2 of 2025, took effect February 21, 2025 for large employers. Small employers had until October 1, 2025 to comply. ESTA replaced the older, narrower Paid Medical Leave Act, which had covered only employers with 50 or more employees.

Which Michigan employers are covered by ESTA?

All private employers, regardless of size. ESTA effectively makes Michigan one of the broadest paid sick leave jurisdictions in the country in terms of covered employers, alongside states like New Jersey and Maryland.

How much paid sick time must Michigan employers provide?

Two coverage tiers based on employer size:

Large employers (more than 10 employees): at least 72 hours of paid sick time per benefit year
Small employers (10 or fewer employees): at least 40 hours of paid sick time per benefit year, plus an additional 32 hours unpaid (totaling 72 hours of leave but only 40 paid)

Accrual runs at one hour of paid sick time for every 30 hours worked. Employers may also choose a frontloading model: provide the full 72 (or 40) hours at the start of the year instead of accruing.

What can ESTA leave be used for?

Permissible reasons mirror most state paid sick leave statutes:

Mental or physical illness, injury, or health condition of the employee or a covered family member
Medical diagnosis, care, or treatment of the employee or family member
Preventative care
Domestic violence, sexual assault, or stalking-related reasons (including medical, legal, or counseling needs)
School or business closure due to a public health emergency
Care for a child whose school or place of care is closed due to a public health emergency

"Family member" under ESTA includes biological, adopted, foster, step, and legal-guardian relationships, plus a domestic partner and individuals with a relationship equivalent to a family relationship.

What are the penalties for ESTA non-compliance?

ESTA includes some of the most aggressive paid sick leave enforcement provisions in the country:

Civil penalty equal to eight times the employee's normal hourly wage for each violation involving failure to provide earned sick time
$1,000 administrative fine for retaliatory action against a current or former employee
Back pay, reinstatement, and other equitable relief available through a private right of action
Three-year statute of limitations on ESTA claims (compared to six months under the prior PMLA)

The damages math under ESTA is severe. A handful of denied sick days, multiplied by eight times the normal hourly wage, can quickly produce five-figure exposure for a single employee. Sick leave policy updates should be revisited at least annually as Michigan accumulates regulatory guidance.

What recordkeeping does ESTA require?

Employers must retain records documenting hours worked and earned sick time accrued, used, and remaining for at least three years. Records must be made available to LEO upon request. Employers must also provide written notice of ESTA rights to employees at hire, post the LEO ESTA notice in a conspicuous workplace location, and include accrual and balance information on each pay statement (or in a separately maintained accessible record).

Michigan Final Paycheck Rules

Michigan's final pay rules sit in the Payment of Wages and Fringe Benefits Act (Public Act 390 of 1978), administered by LEO's Wage and Hour Division.

Final paycheck quick reference

Termination (involuntary): all wages earned and due "as soon as the amount can be determined with due diligence" (practically, on or before the next regular payday)
Resignation (voluntary): on the next regular payday for the pay period in which the separation occurred
Hand harvesters of crops: within 3 days of voluntary termination of employment, regardless of next-payday timing
Includes: regular wages, fringe benefits (vacation pay, accrued paid time off, bonuses) if owed under the employer's written policy or contract
Permitted deductions: taxes, court-ordered deductions, and any deduction the employee has authorized in writing

Michigan does not impose California-style waiting time penalties for late final pay. Late wages do trigger the broader penalty structure under the Payment of Wages and Fringe Benefits Act and may also support a civil action for fees and costs.

Elliott-Larsen Civil Rights Act in 2026

The Elliott-Larsen Civil Rights Act (ELCRA), Public Act 453 of 1976, is Michigan's primary state employment discrimination statute. The 2023 amendments significantly expanded the protected classes.

Which Michigan employers are covered by ELCRA?

ELCRA applies to employers with one or more employees, among the broadest coverage thresholds of any state civil rights act in the country. That makes ELCRA the controlling statute for thousands of small Michigan employers that fall below the federal Title VII 15-employee floor.

What protected classes does ELCRA cover?

ELCRA prohibits employment discrimination on the basis of:

Religion
Race
Color
National origin
Age
Sex (including pregnancy, childbirth, and related medical conditions)
Sexual orientation (added by 2023 amendments, effective March 31, 2024)
Gender identity or expression (added by 2023 amendments, effective March 31, 2024)
Height: Michigan is one of the only states that protects against height discrimination
Weight: Michigan is one of the only states that protects against weight discrimination
Familial status
Marital status

Separately, the Michigan CROWN Act (signed 2023) prohibits discrimination based on hair texture and protective hairstyles, which the Michigan Department of Civil Rights treats as a race-based protection under ELCRA.

How are ELCRA claims enforced?

A Michigan employee may file an administrative charge with the Michigan Department of Civil Rights or proceed directly to court. The statute of limitations is three years. Available remedies include reinstatement, back pay, front pay, compensatory damages, attorney fees, and injunctive relief. Workplace investigation best practices matter more in Michigan than in most states because plaintiffs may bypass the agency entirely and file in circuit court.

Does Michigan require sexual harassment training?

Not by statute for general private employers. Michigan does not impose a mandatory training cadence under ELCRA. That said, training remains a meaningful affirmative defense in hostile environment claims, and the broad ELCRA coverage threshold means even very small employers benefit from a documented annual program. Sexual harassment training in Michigan should cover the expanded sexual orientation and gender identity protections in addition to the traditional Title VII categories.

Pregnancy Accommodation in Michigan

Michigan does not have a state-specific pregnant workers fairness law. Pregnancy accommodation in Michigan is governed by:

The federal Pregnant Workers Fairness Act (PWFA), in effect since June 27, 2023, with EEOC final regulations effective June 18, 2024
ELCRA's prohibition on sex discrimination, which the Michigan Department of Civil Rights interprets to include pregnancy, childbirth, and related medical conditions
The federal Pregnancy Discrimination Act as amended
The federal PUMP for Nursing Mothers Act, which expanded lactation accommodation rights in 2022

What does the federal PWFA require?

Employers with 15 or more employees must provide reasonable accommodations for known limitations related to pregnancy, childbirth, or related medical conditions, unless the accommodation would impose an undue hardship. Common accommodations include:

Additional bathroom, water, or rest breaks
Permission to sit or stand as needed
Schedule changes, telework, or modified work assignments
Time off for medical appointments
Light-duty work assignments
Lactation accommodations consistent with the PUMP Act

For Michigan employers below the 15-employee PWFA threshold, ELCRA still applies. Pregnancy discrimination prevention training should walk managers through both the federal PWFA accommodation process and the broader ELCRA prohibition.

Michigan Whistleblowers' Protection Act

Michigan's Whistleblowers' Protection Act (WPA), Public Act 469 of 1980, is one of the more unusual state whistleblower statutes in the country because of its short statute of limitations.

What does the WPA protect?

An employer may not discharge, threaten, or otherwise discriminate against an employee with respect to compensation, terms, conditions, location, or privileges of employment because the employee:

Reports or is about to report a violation or suspected violation of a federal, state, or local law to a public body
Participates in an investigation, hearing, or court action conducted by a public body
Is requested by a public body to participate in such an investigation

"Suspected violation" is enough. The employee does not have to prove an actual underlying violation, only a reasonable belief that one occurred or is occurring.

What is the WPA filing deadline?

90 days from the date of the alleged retaliation. That is one of the shortest filing windows for a whistleblower claim anywhere in the United States. Compare to the EEOC's 300-day window, the SOX 180-day window, or the federal STAA 180 days for trucking whistleblowers.

The 90-day window has practical consequences. Documentation of any complaint, the employer's response, and the timing of any subsequent adverse action needs to be locked down within hours, not weeks. Whistleblower retaliation in Michigan calls for a faster intake-to-investigation cycle than in most other states.

What relief is available under the WPA?

A successful WPA plaintiff may recover:

Reinstatement
Back pay and benefits
Compensatory damages
Reasonable attorney fees and costs
Injunctive relief

Michigan Cannabis and Off-Duty Conduct

The Michigan Regulation and Taxation of Marihuana Act (MRTMA), enacted by ballot initiative in 2018, legalized adult-use marijuana possession in Michigan but did not extend statutory off-duty employment protection to recreational users.

Are recreational marijuana users protected from employment discipline?

No. Michigan private employers may take adverse employment action (including refusal to hire, discipline, and termination) for off-duty recreational marijuana use, possession, or a positive drug test. Michigan has not enacted protective legislation comparable to California's AB 2188 or New York's Marijuana Regulation and Taxation Act.

What about state government employees?

Michigan ended pre-employment marijuana drug testing for most state government jobs effective October 1, 2023. The change affects roughly two-thirds of state job classifications. Exceptions remain for:

Law enforcement (state troopers, corrections officers)
Healthcare positions
Drivers in certain classifications
Employees operating heavy equipment
Federally regulated positions requiring continued testing

Are medical marijuana cardholders protected?

No employment protection. The Michigan Medical Marihuana Act (MMMA) does not protect cardholders from adverse employment action. The Michigan Court of Appeals has confirmed that private employers may apply zero-tolerance drug policies to MMMA cardholders.

Michigan employers should write drug testing policies that distinguish reasonable-suspicion testing, post-accident testing, and pre-employment testing. Apply the policy non-discriminatorily and document positive results, the testing chain of custody, and the employer's response. Federal contractor obligations and DOT-regulated drivers continue under the federal frameworks regardless of state legalization.

Independent Contractor Classification in Michigan

Michigan uses the common-law "economic realities test" rather than the ABC test that California, Massachusetts, and New Jersey apply. Classification disputes are evaluated under a multi-factor analysis with no single factor controlling.

What does the Michigan economic realities test consider?

Michigan courts evaluate the totality of the circumstances, weighing factors including:

Right of control over the worker's manner and method of performing the work
Payment of wages by the employer
Right to hire, fire, and discipline
Performance of duties as an integral part of the employer's business
Relative investment by each party
Opportunity for profit or loss based on the worker's skill
Permanency of the relationship
Whether the work requires special skills

A contract designating the worker as an "independent contractor" is not controlling. Michigan courts look past the label to the substance of the relationship.

Could Michigan adopt the ABC test?

Senate Bill 6, introduced in the 2025-2026 legislative session, would adopt an ABC test similar to California's framework. The bill is pending and the legislative outlook should be tracked.

In the meantime, Michigan employers should run documented classification audits at least annually for every worker treated as a 1099. Independent contractor misclassification carries exposure under the federal FLSA, the Michigan Unemployment Insurance Agency, the Michigan Department of Treasury, and the IRS.

Michigan Non-Compete Agreements

Michigan continues to allow employer-employee non-compete agreements under MCL 445.774a, but only when the agreement is reasonable as to duration, geographic area, and type of employment or line of business.

What makes a Michigan non-compete reasonable?

Michigan courts evaluate four factors:

Duration: courts have generally enforced one-year restrictions; restrictions exceeding three years are typically struck down
Geographic scope: limited to areas where the employer actually does business; nationwide restrictions usually fail
Type of employment or line of business: limited to a specific subset of an industry; blanket prohibitions are typically struck down
Legitimate competitive business interest: for example, protection of confidential information, customer relationships, or specialized training

Can Michigan courts modify an unreasonable non-compete?

Yes. The statute expressly authorizes a court to limit an unreasonable agreement to render it reasonable, and to specifically enforce the modified agreement. This "blue-pencil" approach gives Michigan employers more flexibility than employers in states (like Wisconsin) that void overbroad non-competes entirely.

Despite that flexibility, Michigan non-compete enforcement is trending toward stricter scrutiny. Audit existing non-compete templates for FLSA classification (as a federal FTC-style ban could revive in litigation), geographic scope, duration, and a clear protectable interest. Non-compete agreement templates should be reviewed by Michigan counsel, not just borrowed from a national form.

Michigan Mass Layoffs and the WARN Act

Michigan does not have a state mini-WARN statute. Mass layoffs and plant closings are governed entirely by the federal Worker Adjustment and Retraining Notification Act, administered in Michigan through the LEO Workforce Development office.

What does federal WARN require for Michigan layoffs?

The federal statute applies to employers with 100 or more employees and triggers a 60-day advance notice obligation when:

50 or more employees at a single site of employment lose their jobs in a plant closing
50 to 499 employees are laid off in a 30-day period and constitute at least 33% of the active workforce at the site
500 or more employees are laid off at a single site in a 30-day period (no percentage requirement)

Notice goes to:

Affected workers (or their union representatives)
Michigan LEO Workforce Development, specifically the State Rapid Response Coordinator
The chief elected official of the local government where the affected site is located

Run any planned reduction in force through legal counsel before issuing notices. WARN exposure for missing or defective notices is 60 days of back pay and benefits per affected worker.

Michigan Workers' Compensation

The Michigan Workers' Disability Compensation Agency (WDCA) administers the state's workers' compensation program under the Workers' Disability Compensation Act. The system is the exclusive remedy for most work-related injuries and occupational diseases.

Which Michigan employers must carry workers' compensation insurance?

Coverage is required for:

All private employers regularly employing one or more employees 35 or more hours per week for 13 or more weeks during the preceding 52 weeks
All private employers regularly employing three or more employees at one time (including part-time)
Agricultural employers employing three or more employees 35 hours or more per week for 13 or more consecutive weeks
Householders employing domestic servants 35 hours or more per week for 13 or more weeks
All public employers, regardless of size

Who counts as an employee for the headcount?

The WDCA's definition of "employee" sweeps broadly. It includes:

Partners are considered employees of the partnership
Corporate officers are considered employees of the corporation
LLC managers are considered employees of the LLC
Subcontractors performing the same trade may count toward general contractor headcount

What are the compliance options?

Three methods to comply:

Purchase commercial workers' compensation insurance
Apply for and maintain status as an approved self-insured employer
Properly execute a WDCA exclusion form (limited circumstances)

Going uninsured loses the exclusive remedy defense and exposes the employer to direct tort liability from injured workers, plus civil penalties and personal liability for officers in some cases.

MIOSHA: Michigan's State OSHA Plan

Michigan operates its own state OSHA plan through the Michigan Occupational Safety and Health Administration (MIOSHA), housed within LEO. MIOSHA enforces both general industry and construction standards through state-specific rules that meet or exceed federal OSHA standards.

What MIOSHA-specific standards matter most?

MIOSHA maintains state-specific standards in:

Construction safety (Part 1 General Provisions through specialized standards)
General industry health and safety
Recordkeeping and reporting
Bloodborne pathogens
Respiratory protection

MIOSHA also runs a Consultation Education and Training (CET) division that provides free on-site assessments to small employers without referral to enforcement.

How does Michigan injury reporting work?

MIOSHA reporting deadlines mirror federal OSHA:

Within 8 hours: any work-related fatality
Within 24 hours: any work-related inpatient hospitalization, amputation, or loss of an eye

Michigan covered employers must maintain OSHA 300 logs and OSHA 301 incident reports consistent with federal recordkeeping rules. OSHA violations in Michigan are processed through MIOSHA's enforcement division, not federal OSHA.

Michigan Unemployment Insurance for Employers

The Michigan Unemployment Insurance Agency (UIA), housed within LEO, administers the state unemployment insurance program. Michigan unemployment is funded entirely by employer contributions; employees pay nothing into the system.

What are the Michigan SUI rates and wage base?

For 2026, Michigan unemployment insurance contribution rates run as follows:

New employer rate: 2.7% of taxable wages
Experienced employer range: 0.06% to 12.2% (up from a 10.3% ceiling in 2025)
Taxable wage base: $9,500 per employee per year

Once an employee's year-to-date wages cross the $9,500 wage base, no further SUI contribution is owed for that employee in the calendar year.

How can Michigan employers reduce their UI rate?

Experienced employer rates depend on the employer's claims history. To keep rates low:

Minimize layoffs and avoid patterns of seasonal layoff and rehire
Respond promptly to UIA claim notices, typically within the 10-business-day window the agency provides
Contest claims when the separation was for misconduct or voluntary quit without good cause
Document terminations contemporaneously with date, reason, and supporting facts
Maintain stable employment over multiple rating periods

What benefits do Michigan UI claimants receive?

Michigan's maximum weekly unemployment benefit increased to $530 effective January 1, 2026, up from $446. The benefit increase, the first significant change since 2002, has practical implications for employer charge accounts and reserve balances. Employers should monitor charge statements as the higher payable amounts work through the system.

UIA filing for tax functions moved to MiUI in December 2025, replacing the prior MiWAM portal. HR teams should confirm that their employer profiles, contact persons, and authorized representatives are current in the new system.

Michigan Pay Frequency and Direct Deposit Rules

The Payment of Wages and Fringe Benefits Act sets minimum pay frequency for Michigan employees.

How often must Michigan employers pay wages?

Weekly, bi-weekly, semi-monthly, or monthly pay schedules are permitted
Wages must be paid within a defined number of days after the close of the pay period (timing depends on the schedule chosen)
The employer must designate regular paydays and notify employees

Can Michigan employers require direct deposit?

No. Michigan employers may offer direct deposit but cannot require it as a condition of employment. The employee must affirmatively elect direct deposit in writing. Paycards are also permitted with employee consent and reasonable fee-free withdrawal mechanisms.

Michigan Wage Statement Requirements

Each Michigan paycheck must be accompanied by a wage statement showing:

Total hours worked in the pay period
Gross wages earned
Itemized deductions
Net wages paid
Pay period dates

Statements may be furnished electronically as long as the employee can access them. Records must be retained for at least three years. Payroll records integrity is the first line of defense in any wage payment claim, ESTA case, or unemployment audit.

Michigan Background Check Rules

Michigan does not have a statewide private-sector ban-the-box law for criminal history questions. Public employers, however, are subject to executive orders restricting initial criminal history inquiries.

What rules apply to Michigan background checks?

Private employers conducting background checks must follow:

Federal Fair Credit Reporting Act for any third-party consumer report (pre-adverse and adverse action notice requirements)
EEOC guidance on conviction-based hiring decisions and disparate impact analysis
Michigan Internet Privacy Protection Act, which prohibits employers from requesting an applicant's personal social media account credentials
Local ordinances in some Michigan cities (Detroit and Kalamazoo have municipal restrictions on certain inquiries)

A Michigan background check program should walk through background investigation best practices for every adverse decision and document the individualized assessment when criminal history is the basis.

Michigan Personnel Records and Internet Privacy

Michigan is one of the few states with a statutory employee right to inspect personnel records. The Bullard-Plawecki Employee Right to Know Act, MCL 423.501 et seq., gives current and former Michigan employees specific access rights.

What does Bullard-Plawecki require?

An employer subject to the Act must, upon written request:

Permit the employee to review the personnel record at reasonable intervals (generally not more than twice per calendar year)
Provide a copy of the record to the employee at no more than the actual cost of duplication
Allow the employee to file a written statement disagreeing with information in the record, which becomes part of the record
Notify the employee when disclosing certain disciplinary action to a third party

"Personnel record" excludes certain categories: medical reports stored separately, letters of reference obtained in confidence, materials related to investigations of criminal activity by the employee, and records maintained pursuant to a security clearance.

What does the Michigan Internet Privacy Protection Act prohibit?

MIPPA, Public Act 478 of 2012, prohibits Michigan employers from:

Requesting an applicant or employee disclose the password or login credentials for a personal social media account
Compelling an applicant or employee to log in to a personal social media account in the employer's presence
Requiring an applicant or employee to add anyone to a contact list on a personal social media account
Penalizing an applicant or employee for refusing to grant such access

Public-facing social media activity remains fair game for review during the hiring process or in connection with workplace investigations, subject to the same EEOC and ELCRA principles that govern any other source of information about an applicant.

Other Michigan Leave Categories

Michigan's smaller leave categories sit in different parts of the code and are sometimes missed during handbook updates.

What is required for jury duty leave?

Michigan employers must allow employees unpaid time off to attend jury selection and serve on a jury. Retaliation, including discharge or threats to discharge for jury service, is prohibited and supports a private right of action.

Does Michigan require time off to vote?

Michigan does not require employers to provide time off to vote. The state moved to no-excuse absentee voting and expanded early voting under Proposal 2 (2022), reducing the practical need for Election Day workplace leave.

What about military leave?

Federal USERRA continues to govern leave for military service in Michigan. Michigan has parallel state-level protections for members of the Michigan National Guard called to state active duty by the Governor, generally tracking the federal USERRA framework.

Is bereavement leave required?

No. Michigan does not require employers to provide paid or unpaid bereavement leave. Employers that adopt a written bereavement policy are bound to follow it under the Payment of Wages and Fringe Benefits Act if the policy creates a paid benefit.

Is family medical leave required at the state level?

No. Michigan workers seeking family medical leave rely on the federal Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid, job-protected leave for eligible employees of covered employers (50 or more employees within 75 miles of the worksite). Michigan does not operate a state PFML program. Pending bills in the legislature would create one, but none have been enacted as of the date of this guide.

Michigan Right-to-Work Repeal

Michigan repealed its right-to-work statute effective February 13, 2024, becoming the first state in decades to reverse a right-to-work law. The repeal restored union security clauses for private-sector unionized workplaces and aligned Michigan with the pre-2012 framework.

What does the repeal mean for Michigan employers?

For unionized Michigan workplaces, the parties may once again negotiate union security clauses requiring all bargaining unit members to either join the union or pay an agency fee covering the union's representation costs. For non-unionized workplaces, nothing about day-to-day employment changed; the National Labor Relations Act continues to govern organizing, protected concerted activity, and unfair labor practice charges.

Does the NLRA still apply?

Yes. The NLRA continues to govern union organizing, collective bargaining, protected concerted activity, and unfair labor practice charges. Even non-union Michigan employers should be aware that conversations among co-workers about wages, schedules, working conditions, or harassment qualify as protected concerted activity. An employer that disciplines an employee for participating in those conversations risks an unfair labor practice charge from the NLRB regardless of whether the workforce is unionized.

Michigan Wage Garnishment and Deductions

Michigan permits wage garnishment under MCL 600.4011 et seq. for child support, tax obligations, and judgment creditors who have obtained a writ of garnishment. The federal Consumer Credit Protection Act caps the percentage of disposable earnings that may be garnished, and Michigan generally tracks the federal cap.

What are the federal garnishment caps?

For most consumer debts, the lower of:

25% of disposable earnings for the workweek, or
The amount by which disposable earnings exceed 30 times the federal minimum wage

Higher percentages apply for child support and tax garnishments. Michigan employers receiving a writ of garnishment must respond timely and accurately. Failing to respond or pay over withheld amounts can convert the employer into a judgment debtor for the underlying debt.

What about voluntary deductions?

The Payment of Wages and Fringe Benefits Act allows voluntary deductions only with written, signed employee authorization. Common examples include health insurance premiums, retirement contributions, charitable donations, and union dues (where applicable). Deductions for cash shortages, breakage, or property loss require both authorization and written consent specific to the deduction in many cases.

Michigan Drug Testing

Michigan does not have a comprehensive private-sector drug testing statute. Private employers may adopt drug-free workplace policies and conduct drug testing as a condition of employment, with limits set primarily by federal law and certain industry-specific frameworks.

What rules apply to Michigan drug testing programs?

A defensible Michigan drug testing program typically includes:

A written policy distributed to all employees and applicants, identifying the substances tested for, the testing methods used, and the consequences of a positive test
Reasonable testing categories: pre-employment, reasonable suspicion, post-accident, and (in safety-sensitive roles) random testing
Chain of custody documentation for every collection, with a SAMHSA-certified laboratory and an MRO review of any positive results
Non-discriminatory application across the workforce, applied consistently to similarly situated employees
Compliance with federal requirements for DOT-regulated drivers, federal contractors subject to the Drug-Free Workplace Act, and other federally regulated populations

Marijuana testing remains permissible in Michigan, including for off-duty use, despite the state's recreational legalization. Public-sector employers face additional constitutional limits on testing programs.

Michigan Workplace Posters

Michigan employers must post:

Michigan Earned Sick Time Act notice (LEO posting)
Michigan Minimum Wage notice (annual update)
MIOSHA Safety and Health Protection on the Job notice
Michigan Workers' Disability Compensation notice
Michigan Unemployment Insurance notice
Michigan Civil Rights Commission "Discrimination is Against the Law" notice
Federal posters: FLSA, FMLA, EEO is the Law, USERRA, EPPA, Pregnant Workers Fairness Act, PUMP Act

Remote and hybrid employees should receive electronic copies of Michigan posters appropriate to their work location. ESTA requires written notice of rights at hire and inclusion of accrual and balance information on each pay statement, in addition to the posted notice.

Michigan Child Labor Rules

Michigan child labor is governed by the Youth Employment Standards Act, Public Act 90 of 1978. The Act sets work permits, hour limits, and prohibited occupations for minors.

What work permits do Michigan minors need?

Most minors aged 14 to 17 must obtain a work permit (CA-1 form) before starting employment. The permit is issued by the school district where the minor attends school, requires parental and employer signatures, and must be retained at the worksite. The permit specifies the hours, duties, and any restrictions that apply.

What hour limits apply to Michigan minors?

Hour limits depend on age and whether school is in session:

Minors under 16, school in session: not more than 8 hours in any combined work-and-school day, not more than 48 hours per week, and not before 7:00 a.m. or after 9:00 p.m. (10:00 p.m. for 16-and-17-year-olds)
Minors 16 and 17: generally not more than 10 hours per day, 48 hours per week, and 6 days per week
Mandatory 30-minute uninterrupted break after 5 consecutive hours of work, paid or unpaid depending on whether the minor is required to perform any duties during the break

What occupations are prohibited for minors?

Federal Hazardous Occupations Orders prohibit minors under 18 from working in roughly 17 categories of dangerous work, including operating power-driven equipment, roofing, mining, and most demolition. Michigan adds additional prohibitions in the Youth Employment Standards Act and its administrative rules.

Penalties for child labor violations can include misdemeanor charges, fines, and stop-work orders. Michigan agriculture has somewhat different rules under the Agricultural Worker Protections framework.

Industry-Specific Compliance Considerations

Several Michigan industries have additional compliance overlays. The headlines below cover the most regulated.

Manufacturing and automotive

Michigan's manufacturing sector, anchored by the Big Three automakers and a dense supplier network, carries concentrated MIOSHA exposure on machine guarding, ergonomics, and chemical handling. Union representation rates remain high in the sector following the 2024 right-to-work repeal. Plant closure and mass layoff cycles also drive WARN compliance work.

Healthcare

Healthcare employers face concentrated MIOSHA bloodborne pathogen and respiratory protection enforcement, plus HIPAA training overlays. Reporting obligations to the Michigan Bureau of Professional Licensing apply when discipline involves clinical practice. Workplace violence prevention programs (driven by federal General Duty Clause and Joint Commission expectations) are particularly relevant.

Construction

Michigan construction employers carry the heaviest MIOSHA enforcement exposure in the state. Subcontractor headcount counts toward workers' compensation thresholds. Public works contractors must also track Davis-Bacon prevailing wages on federally funded projects.

Retail and hospitality

The minimum wage increase, the tipped wage schedule, and ESTA's 72-hour requirement combine to create wage and hour exposure. Tip credit arithmetic gets harder each January as the tipped percentage steps up.

Comparison: Michigan vs. Neighboring States

Multi-state HR teams running people across the Great Lakes should know where Michigan sits relative to its neighbors.

Michigan vs. Ohio

Ohio runs an employer-friendlier framework on several measures:

Minimum wage: Ohio's rate is lower (CPI-adjusted from a base in the low $10s). Michigan is at $13.73 with $15.00 in 2027.
Paid sick leave: Ohio has no statewide paid sick leave mandate. Michigan ESTA requires 72 hours for large employers and 40 hours for small.
Civil rights: Ohio's threshold and protected categories are closer to federal Title VII. Michigan ELCRA covers all employers and includes height and weight as protected categories.
Right-to-work: Ohio is right-to-work. Michigan repealed in 2024.

Michigan vs. Illinois

Illinois runs an even more employee-protective framework on most measures:

Minimum wage: Illinois sits at $15.00 statewide (Cook County and Chicago higher). Michigan reaches $15.00 on January 1, 2027.
Paid leave: Illinois Paid Leave for All Workers Act provides 40 hours of any-purpose paid leave. Michigan ESTA provides 72 hours of paid sick time for specified purposes.
Pay transparency: Illinois requires pay scales and benefits in postings (effective January 1, 2025). Michigan does not have a pay transparency statute as of the date of this guide.
Non-compete: Illinois has statutory wage thresholds for non-compete enforceability. Michigan applies a common-law reasonableness analysis.

Michigan vs. Indiana

Indiana runs a substantially more employer-friendly framework:

Minimum wage: Indiana follows the federal $7.25. Michigan is at $13.73.
Paid sick leave: Indiana has no state paid sick leave mandate. Michigan ESTA covers all employers.
Civil rights: Indiana's state civil rights act has a higher coverage threshold and a narrower protected-category list. Michigan ELCRA reaches one-employee employers and includes the broadest protected-category list in the region.

Michigan Local Government Compliance Layers

While Michigan preempts local minimum wage ordinances, several Michigan municipalities have adopted other employment-related ordinances that overlay state law for employers operating in those jurisdictions.

Detroit

Detroit's Human Rights Ordinance prohibits employment discrimination on bases that include some categories not covered by ELCRA at all moments in time, and the city operates a Civil Rights, Inclusion and Opportunity Department that handles complaints in addition to MDCR. Detroit's Living Wage Ordinance applies to certain city contractors and recipients of city financial assistance.

Ann Arbor

Ann Arbor maintains its own Human Rights Ordinance covering city employment and city contractors with broader protected categories than ELCRA. The city's Living Wage Ordinance imposes wage requirements on contractors above the state minimum.

East Lansing and Kalamazoo

Both cities have local non-discrimination ordinances that supplement ELCRA. Kalamazoo also operates a Civilian Police Oversight structure that touches on certain public-sector employment matters.

Multi-location Michigan employers should map every operating location against any local employment-related ordinances, especially when those locations are in cities with their own civil rights commissions or human rights ordinances.

Michigan Termination Best Practices

Beyond the final pay rules already covered, several Michigan-specific factors shape how careful HR teams approach terminations.

What documentation supports a defensible Michigan termination?

A defensible termination file in Michigan typically includes:

Performance documentation showing the issues that led to termination, dated contemporaneously and signed by the manager
Prior corrective action (verbal warnings, written warnings, performance improvement plans) where progressive discipline was used
Policy violations tied to a specific written policy and the employee's acknowledgement of that policy
Investigation records (interview notes, evidence reviewed, findings) for any termination involving alleged misconduct
Comparator analysis showing how similarly situated employees were treated for similar conduct
Final paycheck calculation with all earned wages, accrued PTO (per policy), commissions, and any deductions documented

What Michigan-specific risks should termination decisions consider?

Michigan adds risk in several areas:

WPA exposure if the termination follows any complaint about a violation of law (the 90-day clock starts at termination, not at filing)
ELCRA exposure if the termination touches any protected category, including the broad height and weight protections unique to Michigan
ESTA retaliation exposure if the termination follows the employee's use or request to use earned sick time
Public policy claims for terminations alleged to violate a clearly established Michigan public policy (refusal to commit perjury, exercise of statutory rights, etc.)
Bullard-Plawecki notice obligations if disciplinary information is later disclosed to a third party

Run high-risk terminations through legal counsel before the conversation. The cost of a defensible process is consistently lower than the cost of defending an indefensible one.

2027 Legislative Outlook

Several Michigan bills filed in the 2025-2026 legislative session are positioned for the 2027 session. HR teams should track:

SB 6: proposed adoption of an ABC test for independent contractor classification, with wage transparency provisions
State paid family and medical leave program proposals aligning Michigan with neighboring states like Minnesota
Statewide pay transparency legislation requiring wage ranges in postings, similar to Illinois
Further ESTA amendments as the regulatory framework matures and case law develops

Track the Michigan legislative session for the next round of changes and update handbook policies accordingly.

How AllVoices Helps Michigan HR Teams

AllVoices supports Michigan HR teams across the compliance touchpoints created by ESTA, ELCRA, and the WPA. The platform fits the rest of your HRIS stack rather than replacing it.

Centralized intake for ELCRA, harassment, and retaliation complaints

Michigan's broad ELCRA coverage and the Whistleblowers' Protection Act's 90-day filing window mean intake speed and documentation matter more than in many other states. AllVoices provides an anonymous reporting channel that captures complaints in a defensible, time-stamped format and routes them by issue type.

HR case management built for state-by-state compliance

An employee relations platform with AI-powered intake that handles each Michigan case from intake through closure produces the kind of contemporaneous documentation that holds up under MDCR, EEOC, LEO, and MIOSHA review. Vera AI, the platform's AI assistant, drafts investigation summaries, suggests next steps, and surfaces patterns across cases. The result is hours saved per case and tighter consistency.

Workplace investigation workflows

When a Michigan complaint requires a structured workplace investigation, the platform's investigation workflow tracks witness interviews, evidence, findings, and final report drafts in one place. The workplace investigations guide covers the methodology in depth.

ESTA compliance documentation

ESTA's eight-times-hourly-wage damages structure makes documentation of accrual, use, denial, and reasons for denial particularly important. AllVoices supports the case-management side of denied-leave disputes, complementing your payroll system's accrual tracking.

Integrations with the HRIS systems Michigan employers already use

AllVoices integrates with Workday, Rippling, Paylocity, BambooHR, and other HRIS platforms so that case data syncs without manual re-entry. For a Michigan employer running ESTA compliance alongside FMLA, ADA accommodations, and PWFA pregnancy accommodation requests, that integration removes one of the bigger sources of compliance drift.

Want to see what this looks like in practice?

Teams running people in Michigan can request a walkthrough of the AllVoices employee relations platform and see the workflows applied to specific Michigan compliance scenarios.

Frequently Asked Questions

What is the Michigan minimum wage in 2026?

$13.73 per hour, effective January 1, 2026. The rate is scheduled to rise to $15.00 on January 1, 2027 and to adjust annually based on the CPI-Midwest thereafter.

How much paid sick leave do Michigan employers have to provide under ESTA?

Large employers (more than 10 employees) must provide at least 72 hours of paid sick time per benefit year. Small employers (10 or fewer) must provide at least 40 hours of paid sick time. Accrual is one hour per 30 hours worked, or the employer may frontload the entire annual amount.

Does Michigan have a state paid family and medical leave program?

No. Michigan workers rely on the federal FMLA for unpaid family and medical leave. ESTA covers paid sick time but does not provide bonding leave for new parents or extended caregiving leave beyond what falls under sick time.

Is Michigan an at-will employment state?

Yes. Michigan follows the at-will doctrine. Either party can terminate the employment relationship at any time, with or without cause, as long as no statute, public policy, or contract is violated. ELCRA, the Whistleblowers' Protection Act, and the Payment of Wages and Fringe Benefits Act create the most important exceptions.

Does Michigan require meal or rest breaks?

For adult employees, no. Michigan does not require meal or rest breaks for adult workers. For minors under 18, employers must provide a 30-minute uninterrupted break after five consecutive hours of work.

Are non-competes enforceable in Michigan?

Yes, when reasonable as to duration, geographic scope, type of employment, and the legitimate competitive business interest being protected. Michigan courts may modify an unreasonable non-compete (the "blue pencil" approach) rather than voiding it entirely.

How quickly must a Michigan whistleblower file a claim?

90 days from the date of the alleged retaliation under the Michigan Whistleblowers' Protection Act. That is one of the shortest filing windows for a whistleblower claim in the country.

What are the penalties for ESTA violations?

A civil penalty equal to eight times the employee's normal hourly wage for each violation involving failure to provide earned sick time, plus a $1,000 administrative fine for retaliatory action. Employees may bring a private action for back pay, reinstatement, and other equitable relief, with a three-year statute of limitations.

Does Michigan have pay transparency requirements in job postings?

Not yet. Michigan does not have a statewide pay transparency law requiring wage ranges in job postings as of the date of this guide. Several bills addressing pay transparency have been introduced in recent legislative sessions but none have been enacted. Multi-state employers operating in Michigan, Illinois, Minnesota, and other Midwestern states with active pay transparency laws often default to the most-restrictive state's rules across all postings to simplify recruiter workflow.

What employee protections did Michigan add by repealing right-to-work?

The 2024 right-to-work repeal restored the ability of unions and employers in Michigan private-sector workplaces to negotiate union security clauses. For non-unionized workplaces, the repeal had no direct day-to-day effect. The NLRA continues to govern protected concerted activity for all Michigan employees regardless of union status.

How do Michigan height and weight protections work in practice?

ELCRA's prohibition on height and weight discrimination is unique among state civil rights statutes. The protection applies to hiring, promotion, compensation, and other terms or conditions of employment. Michigan employers should audit job descriptions and physical requirements to confirm that height and weight criteria are tied to bona fide occupational qualifications, not simply preference. Roles with legitimate physical demands (firefighters, certain emergency responders) may justify specific requirements; many other roles will not.

Does Michigan have a state-level mass layoff statute?

No. Michigan relies entirely on the federal WARN Act for mass layoff and plant closing notice obligations. State-level WARN proposals have surfaced in past legislative sessions but none have advanced into law. Employers planning a Michigan layoff should still contact the LEO Workforce Development State Rapid Response Coordinator early in the process, both to satisfy the federal notice obligation and to coordinate transition services for affected workers.

What recordkeeping does Michigan require for wage and hour compliance?

The Payment of Wages and Fringe Benefits Act and the Improved Workforce Opportunity Wage Act require employers to maintain payroll and time records for at least three years. ESTA adds a parallel three-year retention obligation for sick time accrual, use, and balance records. Records must be made available to LEO upon request during an investigation.

The Bottom Line

Michigan rebuilt its sick leave and minimum wage framework in early 2025 and continues to refine the regulatory framework around ESTA. Combined with the broad coverage of ELCRA, the short WPA filing window, and the 2024 right-to-work repeal, Michigan now sits closer to the employee-protective end of the spectrum than it has at any point in the last 15 years.

The 2026 priorities for Michigan HR teams:

Now: Audit ESTA accrual, frontloading, and tracking systems. Confirm pay statements show accrual and balance. Refresh the employee handbook to reflect ESTA's full coverage of all employers.
Throughout 2026: Run quarterly classification audits for any worker treated as a 1099 contractor under the economic realities test, with an eye toward SB 6 if it advances. Train managers on the WPA's 90-day filing window and intake-to-investigation playbook.
By January 1, 2027: Update payroll systems for the $15.00 minimum wage. Review tipped employee compensation against the new schedule. Refresh non-compete templates against current Michigan reasonableness case law.
Ongoing: Annual ELCRA-aligned harassment and discrimination training, including the expanded sexual orientation, gender identity, and CROWN Act protections. Centralize employee relations case management to support the WPA, ESTA, and ELCRA documentation discipline that Michigan litigation requires.

For Michigan HR teams that want to consolidate complaint intake, investigation workflows, and case documentation in one place, see how AllVoices fits a multi-state compliance program.