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
Improved Workforce Opportunity Wage Act. Each workweek stands alone.
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.
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.
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.
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.
Gross = (40 × rate) + (hours over 40 × rate × 1.5)
| Rule | Michigan |
|---|---|
| Overtime rule | Improved 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 tax | Yes, flat 4.25 percent |
| Claim agency | Michigan Wage and Hour Division, Department of Labor and Economic Opportunity |
| Claim deadline | 3 years for minimum wage and overtime claims, 12 months for other wage claims |
| Worker | Math | Gross |
|---|---|---|
| $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 hours | 40 × $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.
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.
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.
$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.
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.
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.
Yes. Michigan taxes wages, including overtime, at a flat 4.25 percent rate.
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.
Rates and rules checked against these sources in November 2026.
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.