Michigan Employment Laws for Employers
Reviewed Sep 25, 2026 8 of 13 rules verified against official sources How we verify
Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use
Final pay and unused vacation
Final paycheck
If you fire someone, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official sources
An employee who is discharged must be paid all wages due on the regularly scheduled payday for the period in which the termination occurs (hand harvesters of crops follow a separate rule). (Mich. Admin. Code R 408.9007(1))
“Rule 7. (1) An employer shall pay all wages due an employee who quits or is discharged, except for an employee who was engaged in the hand harvesting of crops, on the regularly scheduled payday for the period in which the termination occurs.”
ars.apps.lara.state.mi.us · michigan.gov
Put it in writing with the termination letter template for Michigan.
If an employee quits, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official sources
An employee who quits must be paid all wages due on the regularly scheduled payday for the period in which the termination occurs (hand harvesters of crops follow a separate rule). (Mich. Admin. Code R 408.9007(1))
Same official text as quoted above (see the quote; Mich. Admin. Code R 408.9007(1) · ars.apps.lara.state.mi.us).
“Receive wages earned on the regular scheduled payday for the period in which the employee quits or is discharged.”
Unused vacation (PTO) at separation
Do you have to pay out unused vacation when someone leaves?Depends on your policyVerified Sep 24, 2026 · 2 official sources
In Michigan, vacation pay is a fringe benefit that is owed according to the employer's written contract or written policy, so payout at separation depends on what that contract or policy says. (Michigan LEO Wage and Hour Division, Overview of the Payment of Wages and Fringe Benefits Act (Act 390 of 1978) brochure)
“Receive compensation for fringe benefits earned according to a written contract or written policy such as payment for: a holiday, time off for sickness or injury, time off for vacation or personal reasons, bonuses, or authorized expenses incurred during employment.”
“M.C.L. § 408.473 requires employers to pay fringe benefits in accordance with their written policy.”
Wages, paydays and breaks
Minimum wage
Michigan's minimum wage law applies to employers with 2 or more employees. (Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026)) Michigan's minimum wage is $13.73 per hour (from January 1, 2026). (Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026))
What is the minimum wage?$13.73 per hourVerified Sep 25, 2026 · 2 official sources
Employer coverage: Michigan's minimum wage law applies to employers with 2 or more employees. (Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026))
“Michigan Applicable to employers of 2 or more employees Basic Minimum Rate (per hour): $13.73”
“The Improved Workforce Opportunity Wage Act applies to employees who work in Michigan for employers that have 2 or more employees, 16 years of age and older.”
dol.gov · michigan.gov · verified Sep 25, 2026 · 2 official sources
General rule: Michigan's minimum wage is $13.73 per hour (from January 1, 2026). (Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026))
Same official text as quoted above (see the quote; Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026) · dol.gov).
“LANSING, MI – On Jan. 1, 2026, Michigan's minimum wage rate will increase from $12.48 to $13.73 per hour as set by Michigan's Improved Workforce Opportunity Wage Act which establishes the annual schedule of increases.”
dol.gov · michigan.gov · verified Sep 25, 2026 · 2 official sources
Paydays
How often do you have to pay?Weekly, bi-weekly, semi-monthly or monthlyVerified Sep 25, 2026 · 2 official sources
Michigan requires wages to be paid on a regular basis: weekly, bi-weekly, semi-monthly or monthly. (U.S. DOL WHD State Payday Requirements)
“Michigan 10 X X X X”
“Requires that an employee receive wages earned on a regular basis: weekly, bi-weekly, semi-monthly or monthly.”
Pending verification. Not verified for Michigan yet, so no answer is shown. Each link opens the official source to check.
Paid sick leave
Pending verification:
Ending employment
At-will employment
Yes. Michigan follows at-will employment, with these exceptions (Kinch v. Pinnacle Foods Group LLC, No. 2:16-cv-12840 (E.D. Mich. July 17, 2017), quoting Toussaint v. Blue Cross & Blue Shield of Michigan, 292 N.W.2d 880, 894 (Mich. 1980)):
- Public policy: Recognized, limited (Order, No. 1:04-cv-00835 (W.D. Mich. Aug. 8, 2006), citing Suchodolski v. Mich. Consol. Gas Co., 316 N.W.2d 710, 711 (Mich. 1982))
- Implied contract: Recognized (Kinch v. Pinnacle Foods Group LLC, No. 2:16-cv-12840 (E.D. Mich. July 17, 2017), quoting Toussaint v. Blue Cross & Blue Shield of Michigan, 292 N.W.2d 880, 894 (Mich. 1980))
- Good faith and fair dealing: pending verification (official source)
Public policy exception: recognized?Recognized, limitedVerified Sep 24, 2026 · 2 official pages from the same agency
Michigan recognizes limited public policy exceptions (Suchodolski v. Michigan Consolidated Gas): an employee fired for refusing to violate a law, performing a legal duty, or exercising a legal right can sue; no such claim lies where a statute already prohibits the retaliation and provides a remedy. (Order, No. 1:04-cv-00835 (W.D. Mich. Aug. 8, 2006), citing Suchodolski v. Mich. Consol. Gas Co., 316 N.W.2d 710, 711 (Mich. 1982); Order, No. 1:04-cv-00836 (W.D. Mich.), citing Suchodolski v. Mich. Consol. Gas Co., 316 N.W.2d 710, 711-12 (Mich. 1982))
“Ordinarily, employers and employees enjoy an at-will relationship, meaning the employee can quit or be fired at any time—for any or no reason—subject to certain delimited public policy exceptions.”
“In order to state a claim of wrongful discharge against Michigan public policy, Plaintiff must demonstrate that he suffered an adverse employment action because of a law he refused to violate, a duty he was obligated to discharge, or a right he was entitled to exercise.”
Implied contract exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official pages from the same agency
Michigan's at-will presumption can be rebutted: stated employer policies and established procedures can make a right to continued employment absent just cause enforceable in contract or through a legitimate-expectations claim (Toussaint v. Blue Cross & Blue Shield). (Kinch v. Pinnacle Foods Group LLC, No. 2:16-cv-12840 (E.D. Mich. July 17, 2017), quoting Toussaint v. Blue Cross & Blue Shield of Michigan, 292 N.W.2d 880, 894 (Mich. 1980); Order, No. 3:22-cv-10449-RHC (E.D. Mich. Dec. 8, 2022), quoting Lytle v. Malady, 458 Mich. 153, 163 (1998), citing Toussaint, 408 Mich. 579 (1980))
“"The right to continued employment absent cause for termination may, thus, because of stated employer policies and established procedures, be enforceable in contract . . . ."”
“This “presumption of employment at will can be rebutted so that contractual obligations and limitations are imposed on an employer's right to terminate employment.””
Separation notice
Do you have to give a separation notice when someone leaves?Yes: UA 1711Verified Sep 24, 2026 · 2 official sources
Michigan employers must give each worker, at the time of separation from employment, a copy of form UA 1711 'Unemployment Compensation Notice to Employee' or an equivalent written notice. (Mich. Admin. Code R 421.204)
“shall provide each worker at the time of the worker's separation from employment a copy of form UA 1711, unemployment compensation notice to employee.”
“Each employee, when separated from your employment should receive a completed copy of this form or an equivalent written notice.”
Pending verification:
Michigan and its neighbors
| State | Final pay after firing | Final pay after quitting | Minimum wage | Paid sick leave |
|---|---|---|---|---|
| Michigan | Next regular payday | Next regular payday | $13.73 per hour | Pending verification. Official source (michigan.gov). |
| Indiana | Next regular payday | Next regular payday | $7.25 per hour | Pending verification. Official source (in.gov). |
| Ohio | Pending verification. Official source (codes.ohio.gov). | Pending verification. Official source (codes.ohio.gov). | $7.25 to $11.00 per hour (depends on the case) | Pending verification. Official source (dam.assets.ohio.gov). |
| Wisconsin | Pending verification. Official source (dwd.wisconsin.gov). | Pending verification. Official source (dwd.wisconsin.gov). | $7.25 per hour | No statewide law |
Verified rules only; open a state for its sources.
What an employee costs in Michigan
Every employer pays Social Security 6.2% (Publication 15), Medicare 1.45% (Topic 751) and FUTA (Topic 759). Michigan adds its unemployment insurance tax:
| Michigan payroll tax, 2026 | Amount |
|---|---|
| Taxable wage base per employee | $9,000 (or $9,500 for delinquent employers) |
| Rates for experience-rated employers | 0.06% to 12.2% |
| New-employer rate | 2.70% |
| FUTA credit reduction | None for 2025 or 2026 |
| Estimated employer taxes on a $40,000 salary | $3,345 (8.4%) |
Of the $3,345, $243 is Michigan unemployment insurance tax (2.70% on the first $9,000 of wages) and $3,102 is federal tax.
The estimate counts FUTA at 0.6% of the first $7,000 ($42 per employee), which assumes the full FUTA credit (Topic 759).
Estimate for a new employer and a full year; check with your payroll provider. Sources: U.S. DOL, State UI Laws, July 2026, page 3; U.S. DOL, FUTA credit reductions.
Federal wage enforcement in Michigan
In FY2021 to FY2025, the federal Wage and Hour Division concluded 1,742 cases in Michigan (n = 1,742), 1,409 with violations, finding $15,602,914 in back wages owed to 19,605 employees and assessing $5,060,188 in civil money penalties (DOL enforcement data). Overtime back wages were part of 52% of the violation cases. OSHA opened 18,382 inspections in the same years (OSHA data). Enforcement data is not a violation rate: it shows where federal investigators looked. Wage violations by industry.
Michigan runs its own OSHA-approved State Plan that covers private employers, so workplace safety rules for most private workplaces in Michigan are enforced by the state program rather than by federal OSHA (OSHA: State Plans).
Changes coming in 2027
- Minimum wage, from Jan 1, 2027: $15.00/hour (now $13.73/hour). Scheduled in law (michigan.gov).
Changelog
- Sep 24, 2026: first verified, 4 rules.
- Sep 26, 2026: verified: minimum wage (employer coverage), now backed by two independent official sources. (michigan.gov)
- Sep 26, 2026: verified: minimum wage, now backed by two independent official sources. (michigan.gov)
- Sep 26, 2026: verified: payday frequency, now backed by two independent official sources. (michigan.gov)
- Sep 26, 2026: verified: separation notice, now backed by two independent official sources. (michigan.gov)
- Sep 28, 2026: verified: PTO payout, now backed by two independent official sources. (michigan.gov)
Questions about Michigan employment laws
What is the minimum wage in Michigan?
Michigan's minimum wage law applies to employers with 2 or more employees. (Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026)) Michigan's minimum wage is $13.73 per hour (from January 1, 2026). (Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026))
Is Michigan an at-will state?
Yes. Michigan follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 2, and 2 are recognized in Michigan (Kinch v. Pinnacle Foods Group LLC, No. 2:16-cv-12840 (E.D. Mich. July 17, 2017), quoting Toussaint v. Blue Cross & Blue Shield of Michigan, 292 N.W.2d 880, 894 (Mich. 1980)).
When is the final paycheck due after firing someone in Michigan?
An employee who is discharged must be paid all wages due on the regularly scheduled payday for the period in which the termination occurs (hand harvesters of crops follow a separate rule). (Mich. Admin. Code R 408.9007(1))
Sources (16)
- Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026)
- Improved Workforce Opportunity Wage Act (Michigan LEO Minimum Wage and Overtime FAQ)
- Improved Workforce Opportunity Wage Act (Michigan LEO news release, Dec. 8, 2025)
- U.S. DOL WHD State Payday Requirements
- Payment of Wages and Fringe Benefits Act, Public Act 390 of 1978 (Michigan LEO Wage and Hour page)
- Mich. Admin. Code R 408.9007(1)
- Michigan LEO Wage and Hour Division, Payment of Wages and Fringe Benefits Act brochure
- Michigan LEO Wage and Hour Division, Overview of the Payment of Wages and Fringe Benefits Act (Act 390 of 1978) brochure
- U.S. District Court, E.D. Mich., No. 1:18-cv-12899 (Nov. 6, 2019), describing the Wages and Fringe Benefits Act, M.C.L. 408.471 and 408.473
- Kinch v. Pinnacle Foods Group LLC, No. 2:16-cv-12840 (E.D. Mich. July 17, 2017), quoting Toussaint v. Blue Cross & Blue Shield of Michigan, 292 N.W.2d 880, 894 (Mich. 1980)
- Order, No. 3:22-cv-10449-RHC (E.D. Mich. Dec. 8, 2022), quoting Lytle v. Malady, 458 Mich. 153, 163 (1998), citing Toussaint, 408 Mich. 579 (1980)
- Order, No. 1:04-cv-00835 (W.D. Mich. Aug. 8, 2006), citing Suchodolski v. Mich. Consol. Gas Co., 316 N.W.2d 710, 711 (Mich. 1982)
- Order, No. 1:04-cv-00836 (W.D. Mich.), citing Suchodolski v. Mich. Consol. Gas Co., 316 N.W.2d 710, 711-12 (Mich. 1982)
- Mich. Admin. Code R 421.204
- Michigan UIA form UIA 1711, Unemployment Compensation Notice to Employee (Rev. 8-26)
- U.S. Department of Labor: State labor offices
Checked Sep 25, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error