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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

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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.”

Michigan LEO Wage and Hour Division, Payment of Wages and Fringe Benefits Act brochure · michigan.gov

ars.apps.lara.state.mi.us · michigan.gov

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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.”

Michigan LEO Wage and Hour Division, Overview of the Payment of Wages and Fringe Benefits Act (Act 390 of 1978) brochure · michigan.gov

“M.C.L. § 408.473 requires employers to pay fringe benefits in accordance with their written policy.”

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 · govinfo.gov

michigan.gov · govinfo.gov

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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”

    Michigan minimum wage law (DOL WHD state minimum wage table, updated July 1, 2026) · dol.gov

    “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.”

    Improved Workforce Opportunity Wage Act (Michigan LEO Minimum Wage and Overtime FAQ) · michigan.gov

    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.”

    Improved Workforce Opportunity Wage Act (Michigan LEO news release, Dec. 8, 2025) · michigan.gov

    dol.gov · michigan.gov · verified Sep 25, 2026 · 2 official sources

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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”

U.S. DOL WHD State Payday Requirements · dol.gov

“Requires that an employee receive wages earned on a regular basis: weekly, bi-weekly, semi-monthly or monthly.”

Payment of Wages and Fringe Benefits Act, Public Act 390 of 1978 (Michigan LEO Wage and Hour page) · michigan.gov

dol.gov · michigan.gov

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Pending verification. Not verified for Michigan yet, so no answer is shown. Each link opens the official source to check.

Paid sick leave

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 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.”

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) · govinfo.gov

“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.”

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) · govinfo.gov

govinfo.gov · govinfo.gov

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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 . . . ."”

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) · govinfo.gov

“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.””

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) · govinfo.gov

govinfo.gov · govinfo.gov

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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.”

Michigan UIA form UIA 1711, Unemployment Compensation Notice to Employee (Rev. 8-26) · michigan.gov

ars.apps.lara.state.mi.us · michigan.gov

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Michigan and its neighbors

StateFinal pay after firingFinal pay after quittingMinimum wagePaid sick leave
MichiganNext regular paydayNext regular payday$13.73 per hourPending verification. Official source (michigan.gov).
IndianaNext regular paydayNext regular payday$7.25 per hourPending verification. Official source (in.gov).
OhioPending 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).
WisconsinPending verification. Official source (dwd.wisconsin.gov).Pending verification. Official source (dwd.wisconsin.gov).$7.25 per hourNo 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, 2026Amount
Taxable wage base per employee$9,000 (or $9,500 for delinquent employers)
Rates for experience-rated employers0.06% to 12.2%
New-employer rate2.70%
FUTA credit reductionNone 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)

Checked Sep 25, 2026 · How we verify every rule · Report an error