Michigan's minimum wage is $13.73 an hour in 2026 and $15.00 from January 1, 2027, overtime is 1.5 times the regular rate after 40 hours in a 7-day week, and the Earned Sick Time Act lets most workers use up to 72 hours of paid sick time a year, or 40 at a small business.
Those are the core rules, as of October 2026. Michigan's labor law changed a lot in February 2025 and is still changing: the tipped wage is climbing every year, and teen work permits moved online in October 2026. This guide uses the Michigan Department of Labor and Economic Opportunity's Wage and Hour Division FAQs, read in October 2026.
Michigan's wage schedule
| From | Minimum wage | Tipped minimum | Under-18 rate (85%) |
|---|---|---|---|
| February 21, 2025 | $12.48 | $4.74 | $10.61 |
| January 1, 2026 | $13.73 | $5.49 | $11.67 |
| January 1, 2027 | $15.00 | $6.30 | $12.75 |
The minimum wage and overtime law, the Improved Workforce Opportunity Wage Act, covers employees aged 16 and over who work for employers with 2 or more employees. Newly hired employees under 20 can be paid a training wage of $4.25 an hour for their first 90 calendar days, as of October 2026. For the wage on its own, see my Michigan minimum wage guide.
The tipped wage is on a ramp to 50%
Here's the change most restaurant owners haven't priced in. Michigan's tipped minimum is set as a share of the full minimum wage, and that share rises every January. If tips don't bring a worker up to the full minimum, the employer pays the shortfall.
| From | Tipped minimum as a share of the minimum wage |
|---|---|
| February 21, 2025 | 38% |
| January 1, 2026 | 40% |
| January 1, 2027 | 42% |
| January 1, 2028 | 44% |
| January 1, 2029 | 46% |
| January 1, 2030 | 48% |
| January 1, 2031 onward | 50% |
Overtime
Overtime didn't change in 2025. Nonexempt employees get 1.5 times their regular rate for hours over 40 in a 7-day workweek. Executive, administrative and professional employees can be exempt if they meet the salary test the Division ties to the federal standard.
Earned Sick Time Act, step by step
- Check your size. A small business has 10 or fewer employees, counting full-time, part-time, temporary and agency staff.
- Start accrual on February 21, 2025 or the employee's first day, whichever is later.
- At a small business, employees earn at least 1 hour for every 30 hours worked and can use up to 40 hours of paid sick time a calendar year.
- Larger employers can limit use to 72 hours per 12-month period.
- Or frontload: give at least 72 hours, or 40 at a small business, at the start of the benefit year or on the hire date.
There's one grace period worth knowing. A small business that had no employees on or before February 21, 2022 doesn't have to comply until 3 years after it first hires. The Division's example is a business that started in October 2024 with 2 employees, whose staff begin accruing in October 2027.
Contracts, travel and claims
- If you had employees on a contract signed before December 31, 2024 lasting three years or less, the Act applies only once the contract ends, and you must tell the Department if those employees earn less than 72 hours of sick time, or 40 at a small business.
- A Michigan employee sent to work in another state by the same employer keeps accruing and can still use earned sick time.
- Workers can file a claim for unpaid minimum wage or overtime online, in person at a Wage and Hour Division office, or by calling 855-464-9243.
- The minimum wage and overtime poster is free and comes in English, Spanish and Arabic.
Teen work permits moved online in October 2026
From October 2, 2026, Michigan school districts no longer issue work permits. Employers and minors register with the Wage and Hour Division through the Youth Employment Permit Portal (YEPP) and get the permit there before the teen starts. Minors must be supervised by an adult at all times, and employers keep accurate time records for each minor.
| Rule | Under 16 | Ages 16 and 17 |
|---|---|---|
| Daily limit | 3 hours on a school day, 8 on a non-school day | 10 hours |
| School week | 18 hours | 24 hours |
| Non-school week | 40 hours | 48 hours, up to 6 days |
| Time of day, school in session | 7:00 am to 7:00 pm | 6:00 am to 10:30 pm Sunday to Thursday, to 11:30 pm Friday and Saturday |
| Break | 30 minutes, documented, after 5 hours | 30 minutes, documented, after 5 hours |
Employers can apply to the Division for an hours deviation for 16 and 17 year olds, but they need a valid work permit and written parental approval first. For how other states run teen permits, see my New York working papers guide.
Paydays
The US Department of Labor's payday table lists Michigan as allowing weekly, biweekly, semi-monthly or monthly paydays, with the frequency depending on the job. My pay frequency laws guide compares the states.
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My verdict
Michigan is a state in transition. Budget for $15.00 in January 2027, raise your tipped rate every January until 2031, set sick time up correctly for your size, and register on YEPP before you hire anyone under 18. The rules aren't hard. The trap is relying on what was true before 2025.
Frequently asked questions
What is the minimum wage in Michigan?
It's $13.73 an hour from January 1, 2026 and $15.00 from January 1, 2027, as of October 2026.
What is the tipped minimum wage in Michigan?
$5.49 an hour in 2026 and $6.30 in 2027. It's 40% of the minimum wage in 2026, rising each year to 50% from January 1, 2031.
How much sick time do Michigan employers have to give?
Employees earn at least 1 hour per 30 hours worked. Small businesses with 10 or fewer employees can cap paid use at 40 hours a year, and larger employers at 72 hours.
Who issues work permits in Michigan now?
From October 2, 2026, permits come through the Wage and Hour Division's Youth Employment Permit Portal (YEPP), not school districts.
How many hours can a 16 year old work in Michigan during the school week?
Up to 24 hours in a school week and 10 hours a day, between 6:00 am and 10:30 pm Sunday to Thursday.


