Overtime Calculator Michigan

Michigan runs its own overtime law: 1.5 times pay after 40 hours a week, enforced by the Wage and Hour Division. Enter your rate and hours for a Michigan paycheck estimate.

Rules verified November 2026 · Sources: U.S. Department of Labor

By Mudassir Khan

Your Michigan week

Improved Workforce Opportunity Wage Act. Each workweek stands alone.

$/hr
hrs
Gross pay this week (45.0 hrs)$950.00
Regular pay (first 40 hrs)$800.00
Overtime pay at 1.5x (5.0 hrs)$150.00
your overtime rate$30.00/hr

Michigan gives you 3 years for overtime claims but only 12 months for other unpaid wage complaints, so know which clock you are on. Estimates only. Not tax, legal, or payroll advice. Confirm with your employer or a qualified professional.

How overtime works in Michigan

1 · State law sets the floor

The Improved Workforce Opportunity Wage Act requires 1.5 times the regular rate for hours over 40 in a workweek for nonexempt workers. It covers employers with 2 or more employees, and the math matches the FLSA.

2 · Three years for overtime claims

Minimum wage and overtime complaints must be filed with the Wage and Hour Division within 3 years of the violation. Other unpaid wage or fringe benefit complaints get only 12 months, so the claim type decides the deadline.

3 · Tipped math changed in 2026

The tipped cash wage rose to $5.49 an hour in 2026, 40 percent of the $13.73 minimum, provided tips bring the total to the full minimum. For overtime, the tipped worker's regular rate is the full $13.73, not the $5.49 cash wage.

The Michigan formula
Gross = (40 × rate) + (hours over 40 × rate × 1.5)

Rules at a glance, 2026

RuleMichigan
Overtime ruleImproved Workforce Opportunity Wage Act: 1.5 times pay after 40 hours in a workweek
Minimum wage 2026$13.73 from Jan 1, 2026, up from $12.48 ($15.00 arrives Jan 1, 2027)
State income taxYes, flat 4.25 percent
Claim agencyMichigan Wage and Hour Division, Department of Labor and Economic Opportunity
Claim deadline3 years for minimum wage and overtime claims, 12 months for other wage claims

Worked examples

WorkerMathGross
$23/hr, 48 hours$920 + 8 × $34.50$1,196.00
$13.73/hr (minimum wage), 50 hours$549.20 + 10 × $20.60$755.15
$20/hr, 44 hours$800 + 4 × $30$920.00
$17/hr, 40 hours40 × $17, no overtime$680.00

Example 2 runs the full minimum wage math: 40 hours at $13.73 is $549.20, and 10 overtime hours at $20.60 each add $205.95. The $15.00 rate arriving in January 2027 will push every one of these numbers higher.

Michigan specifics worth knowing

The wage is climbing fast. Michigan jumped from $12.48 to $13.73 on January 1, 2026 and hits $15.00 on January 1, 2027, after which yearly increases track inflation. Budgeting overtime off last year's floor underpays every minimum wage hour this year.

Two clocks, two deadlines. Michigan is unusual: minimum wage and overtime complaints get 3 years, but ordinary unpaid wage and fringe benefit complaints get only 12 months. File under the right category or you can miss a shorter deadline you did not know existed.

Flat tax, no surprises. Michigan taxes wages at a flat 4.25 percent. Your state tax on overtime is one simple multiplication, and no city income tax layer complicates the math the way it does in Ohio or Pennsylvania.

Michigan overtime math matches the federal baseline explained in the FLSA overtime rules guide. For a neighboring state with the same federal style math, see our Illinois overtime calculator.

Common mistakes

Mistake 1: Using the 12 month deadline for an overtime claim. Overtime and minimum wage complaints get 3 years; ordinary wage complaints get 12 months. Workers owed plain unpaid wages who assume they have 3 years lose their claim after one.
Mistake 2: Budgeting off the old $12.48 rate. The minimum wage rose to $13.73 on January 1, 2026. Pay plans built on the old number underpay every hour worked this year.
Mistake 3: Running tipped overtime off the $5.49 cash wage. The regular rate for a tipped worker's overtime is the full $13.73 minimum wage, not the $5.49 cash wage. Overtime hours are worth $20.60 each before tips, not $8.24.
Mistake 4: Averaging two weeks together. Each workweek stands alone. A 50 hour week followed by a 30 hour week is 10 overtime hours, and no employer averaging trick changes that.

Frequently asked questions

Does Michigan have its own overtime law?

Yes. The Improved Workforce Opportunity Wage Act requires 1.5 times the regular rate for hours over 40 in a workweek, mirroring the federal FLSA, with no daily overtime rule.

What is the minimum wage in Michigan in 2026?

$13.73 an hour from January 1, 2026, up from $12.48. The tipped cash wage is $5.49 an hour, 40 percent of the minimum, and the rate rises to $15.00 on January 1, 2027.

Where do I file an unpaid overtime claim in Michigan?

With the Michigan Wage and Hour Division of the Department of Labor and Economic Opportunity, or in court. Minimum wage and overtime complaints must be filed within 3 years of the violation. Other unpaid wage claims get only 12 months.

Is there daily overtime in Michigan?

No. Michigan has no daily overtime rule. Overtime is owed only for hours over 40 in a workweek at 1.5 times the regular rate.

Does Michigan tax overtime pay?

Yes. Michigan taxes wages, including overtime, at a flat 4.25 percent rate.

Are salaried Michigan employees owed overtime?

Yes, if nonexempt. A salary alone does not remove overtime rights in Michigan. Only employees who pass the exempt duties and salary tests can be denied overtime pay.

Want the same math without the Michigan framing? Use the overtime pay calculator. Curious what the no tax on overtime deduction does to a Michigan paycheck? Try the deduction calculator and remember the flat 4.25 percent state tax still applies.