Exemptions: Overtime & minimum wage - Michigan

Summary of differences between federal and state regulations

Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional, and outside sales employees. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees.

To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684 per week. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department’s regulations.

These salary minimum does not apply to outside sales employees, teachers, and employees practicing law or medicine. Exempt computer employees may be paid at least $684 on a salary basis or on an hourly basis at a rate not less than $27.63 an hour.

Employees exempt from the Michigan overtime provisions are: persons in an administrative, executive and professional capacity, those holding elective offices and political appointees, persons working at amusement or recreational establishments, and employees not subject to minimum wage.

Michigan requires that executive and administrative employees in retail or service establishments spent no more than 40 percent of working time engaged in duties that are not directly and closely related to exempt work.

Michigan does not reference (and may not recognize) the “highly compensated employee” exemption for those earning over $107,432 per year.

State

Contacts

Michigan Department of Labor & Economic Growth

Bureau of Workers’ and Unemployment Compensation

Wage and Hour Division

Regulations

Act 138 of 2014
Chapter 408, Section 408.414a of the Michigan Compiled Laws:
408.414a Compensation for workweek in excess of 40 hours; exceptions; rules; unpaid minimum wages; appropriation; compensatory time in lieu of monetary overtime compensation.
Sec. 4a.

Department of Consumer and Industry Services, Wage and Hour Division, General Rules, R 408.701, Definitions, at http://dmbinternet.state.mi.us/DMB/ORRDocs/AdminCode/1656_2016-047LR_AdminCode.pdf.

Federal

Contact

The Department of Labor is the federal agency that monitors hours worked.

Regulations

Regulations for exempt employees can be found in CFR 29 Part 541, Defining And Delimiting The Exemptions For Executive, Administrative, Professional, Computer And Outside Sales Employees