Michigan Employer HR Compliance Guide

Priority Compliance Actions

• 1Update all job postings to include pay ranges if you have 25 or more employees, and establish a process to share pay range information with current employees upon request.
• 2Audit your paid sick leave policy to ensure compliance with Michigan's updated PMLA accrual, usage, and documentation rules, particularly if you have 10 or fewer employees covered since October 2025.
• 3Verify you are paying at least the correct statewide minimum wage for your location and confirm whether a higher local minimum applies in Detroit, Ann Arbor, Grand Rapids, or Flint.
• 4Review your employee handbook and manager training to incorporate expanded anti-retaliation protections for employees who use sick leave or other protected leave.
• 5Assess independent contractor classifications using Michigan's applicable multi-factor test to reduce misclassification exposure as enforcement scrutiny increases.

Leave Laws

Federal FMLA applies to Michigan employers with 50 or more employees, providing up to 12 weeks of unpaid, job-protected leave. Michigan's Paid Medical Leave Act (PMLA), effective since 2019 and updated in October 2025, requires employers with 50 or more employees to provide up to 40 hours of paid sick leave per year; employers with 10 or fewer employees have had specific accrual and usage obligations since October 2025 as well. Employees accrue paid sick leave at one hour per 35 hours worked. Anti-retaliation protections for employees using sick time were strengthened in 2025–2026.

Wage & Hour

Michigan follows federal overtime rules requiring 1.5x pay for hours over 40 per week; there is no state daily overtime requirement. The tip credit is being phased out gradually, with tipped workers' minimum rising from 38% to 50% of the full minimum wage by 2031. Final paychecks are due on the next regular payday following separation; Michigan does not mandate immediate payment at termination. Pay frequency must be at least twice per month (semi-monthly), and Michigan does not have a broad expense reimbursement statute, though reimbursement policies should be reviewed to avoid wage deduction issues.

Worker Classification

Michigan is an at-will employment state, allowing termination for any lawful reason without cause. For independent contractor classification, Michigan generally applies a multi-factor economic reality or common law right-to-control test depending on the context (e.g., unemployment insurance uses its own statutory test). Non-compete agreements are enforceable in Michigan if reasonable in scope, duration, and geographic area under the Michigan Antitrust Reform Act, though courts scrutinize overly broad agreements.

Hiring & Onboarding

Michigan has a statewide ban-the-box law (the Michigan's Workforce Opportunity Wage Act provisions and local ordinances) that restricts criminal history inquiries on initial applications for public employers; some local jurisdictions such as Detroit extend this to private employers. There is no statewide salary history ban, but employers should monitor local ordinances. New hire reporting is required within 20 days of hire to the Michigan State Disbursement Unit. Drug testing is generally permissible but must be conducted consistently and in compliance with Michigan's Medical Marihuana Act, which limits adverse action based solely on positive tests for lawful marijuana use in some circumstances.

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