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Hiring

Advertising
What are the requirements relating to advertising open positions?

No state law requires or generally regulates the advertising of open positions, with the exception of a general proscription against advertising in a manner that discriminates or solicits applicants on the basis of a protected classification, unless the characteristic is a bona fide occupational qualification.

Background checks
What can employers do with regard to background checks and inquiries?

(a) Criminal records and arrests

As a rule, state law parallels federal law in that there are only very limited restrictions in inquiring about convictions and arrests. Under state law, however, an employer may also ask whether an applicant has any felony charges pending against him or her.

(b) Medical history

There are no unique requirements regarding medical history.

(c) Drug screening

There are no unique requirements regarding drug screening.

(d) Credit checks

There are no unique requirements regarding credit checks.

(e) Immigration status

There are no unique requirements regarding immigration status.

(f) Social media

The Michigan Internet Privacy Protection Act prohibits an employer from demanding applicants or employees provide passwords to their social media accounts.

(g) Other

Not applicable.

Wage and hour

Pay
What are the main sources of wage and hour laws in your state?

Until September 1 2014 the Michigan Minimum Wage Act (MCL 408.381, et seq.) is the main source of wage and hour law. As of September 1 2014 the Michigan Workforce Opportunity Wage Act (Public Act 138 of 2014) will become the main sources of wage and hour law. Government contractors may also be subject to the state’s Davis-Bacon counterpart, which sets prevailing wages for state-funded construction projects. Some communities also have “living wage” ordinances.

What is the minimum hourly wage?

  • Until September 1 2014, $7.40, with tipped employee minimum of $2.65.
  • Effective September 1 2014, $8.15, with a tipped employee minimum of $3.10.
  • Effective January 1 2016, $8.50, with a tipped employee minimum of $3.23.
  • Effective January 1 2017, $8.90, with a tipped employee minimum of $3.38.
  • Effective January 1 2018, $9.25, with a tipped employee minimum of $3.52.
  • Effective January 1 2019, adjusted by consumer price index increase for the Midwest region, but by no more than 3.5%, with tipped employee minimum to be 38% of regular minimum.

In limited circumstances employers may pay employees under the age of 18 a wage of at least 85% of the current regular minimum wage.

Other state rules may apply to employers that are not subject to the federal Fair Labor Standards Act.

State minimum wage and overtime rules do not apply in the event that the federal minimum wage equals or exceeds the state minimum wage.

What are the rules applicable to final pay and deductions from wages?

The Michigan Payment of Wages and Fringe Benefits Act (MCL 408.471, et seq.) controls final pay and other pay matters. Final pay must be provided “as soon as the amount can with due diligence be determined,” which under the applicable rules is interpreted to be “on the regularly scheduled payday for the period in which the termination occurs.”

Hours and overtime
What are the requirements for meal and rest breaks?

No general state law requires meal and rest breaks. However, employees under the age of 18 must have a 30-minute meal break for shifts of five hours or longer.

What are the maximum hour rules?

No state rules control maximum hours for the general workforce, except for minors.

How should overtime be calculated?

Except with respect to certain domestic service and companionship workers who do not live in the client’s residence, and childcare workers who do not live in the child’s home, Michigan adopts the federal rules for calculating overtime pay. Under Michigan law, these two groups—which may be exempt for overtime pay under federal law—are still entitled to overtime premiums for hours worked over 40 hours in a working week in the same manner as other non-exempt employees are paid overtime under federal law.

What exemptions are there from overtime?

Michigan’s exemptions are the same as those under federal law, except with respect to certain domestic service and companionship workers who do not live in the client’s residence and childcare workers who do not live in the child’s home.

Record keeping
What payroll and payment records must be maintained?

Per state laws, an employer is to maintain a record for each employee that indicates the employee's:

  • name;
  • address;
  • birth date;
  • occupation or classification in which he or she is employed;
  • total basic rate of pay;
  • total hours worked in each pay period; and
  • total wages paid each pay period.

The record must further set out a separate itemization of deductions and a listing or itemization of fringe benefits.

If an employer has a group of 10 or more employees who have identical fringe benefits, one central itemization or listing may be kept for each group, provided that the record identifies the group to which they belong. These records must be maintained for no less than three years.  

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