State Law > Michigan > Michigan Overtime Pay Law

Michigan Overtime Pay Law

 

Michigan's overtime pay law is stated in Chapter 408 of the Michigan Compiled Laws.

408.384a Compensation for overtime; exceptions; rules; unpaid minimum wages; appropriation; compensatory timein lieu of monetary overtime compensation.

(1) Except as otherwise provided in this section, an employee shall receive compensation at not less than 1-1/2times the regular rate at which the employee is employed for employment in a workweek in excess of 40 hours.

(2) The state or a political subdivision, agency, or instrumentality of the state does not violate subsection (1)with respect to the employment of an employee in fire protection activities or an employee in law enforcement activities,including security personnel in correctional institutions, if any of the following applies:

(a) In a work period of 28 consecutive days, the employee receives for tours of duty, which in the aggregateexceed 216 hours, compensation for those hours in excess of 216 at a rate not less than 1-1/2 times the regularrate at which the employee is employed. The employee's regular rate shall be not less than the statutory minimumhourly rate.

(b) For an employee to whom a work period of at least 7 but less than 28 days applies, in the employee's work periodthe employee receives for tours of duty, which in the aggregate exceed a number of hours which bears the same ratioto the number of consecutive days in the employee's work period as 216 bears to 28 days, compensation for thoseexcess hours at a rate not less than 1-1/2 times the regular rate at which the employee is employed. The employee'sregular rate shall be not less than the statutory minimum hourly rate.

(c) If an employee engaged in fire protection activities would receive overtime pay ments under this act solelyas a result of that employee's trading of time with another employee pursuant to a voluntary trading time arrangement,overtime, if any, shall be paid to employees who participate in the trading of time as if the time trade had notoccurred. As used in this subdivision, “trading time arrangement” means a practice under which employees of a firedepartment voluntarily substitute for one another to allow an employee to attend to personal matters, which practiceis neither for the convenience of the employer nor because of the employer's operations.

(3) The state or a political subdivision, agency, or instrumentality of the state engaged in the operation ofa hospital or an establishment that is an institution primarily engaged in the care of the sick, the aged, or thementally ill or defective who reside on the premises does not violate subsection (1) if both of the following conditionsare met:

(a) Pursuant to a written agreement or written employment policy arrived at between the employer and the employeebefore performance of the work, a work period of 14 consecutive days is accepted instead of the workweek of 7 consecutivedays for purposes of overtime computation.

(b) For the employee's employment in excess of 8 hours in a workday and in excess of 80 hours in the 14-day period,the employee receives compensation at a rate of 1-1/2 times the regular rate, which rate shall be not less thanthe statutory minimum hourly rate at which the employee is employed.

(4) Subsections (1), (2), and (3) do not apply to any of the following:

(a) An employee employed in a bona fide executive, administrative, or professional capacity, including an employeeemployed in the capacity of academic administrative personnel or teacher in an elementary or secondary school.However, an employee of a retail or service establishment is not excluded from the definition of employee employedin a bona fide executive or administrative capacity because of the number of hours in the employee's workweek whichthe employee devotes to activities not directly or closely related to the performance of executive or administrativeactivities, if less than 40% of the employee's hours in the workweek are devoted to those activities.

(b) An individual who holds a public elective office.

(c) A political appointee of a person holding public elective office or a political appointee of a public body,if the political appointee described in this subdivision is not covered by a civil service system.

(d) An employee employed by an establishment which is an amusement or recreational establishment, if the establishmentdoes not operate for more than 7 months in a calendar year.

(e) An employee employed in agriculture, including farming in all its branches, which among other things includes:the cultivation and tillage of the soil; dairying; the production, cultivation, growing, and harvesting of agriculturalor horticultural commodities; the raising of livestock, bees, fur-bearing animals, or poultry; and a practice,including forestry or lumbering operations, performed by a farmer or on a farm as an incident to or in conjunctionwith farming operations, including preparation for market, delivery to storage, or delivery to market or to a carrierfor transportation to market or the processing or preserving of perishable farm products.

(f) An employee who is not subject to the minimum hourly wage provisions of this act.

(5) The director of the department of consumer and industry services shall promulgate rules pursuant to theadministrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to define the terms used in subsection(4).

(6) For purposes of administration and enforcement, an amount owing to an employee that is withheld in violationof this section is unpaid minimum wages under this act.

(7) The legislature shall annually appropriate from the general fund to each political subdivision affected bysubsection (2) an amount equal to the difference in direct labor costs before and after January 4, 1979 which arisesfrom any change in existing law resulting from the enactment of subsection (2) and incurred by each such politicalsubdivision.

(8) In lieu of monetary overtime compensation, an employee subject to this act may receive compensatory time offat a rate of not less than 1-1/2 hours for each hour of employment for which overtime compensation is requiredunder this act, subject to all of the following:

(a) The employer allows employees a total of at least 10 days of leave per year without loss of pay and providesthe compensatory time to the employee only pursuant to either of the following:

(i) Applicable provisions of a collective bargaining agreement, memorandum of understanding, or any other writtenagreement between the employer and representative of the employee.

(ii) If employees are not represented by a collective bargaining agent or other representative designated by theemployee, a plan adopted by the employer and provided in writing to its employees that provides employees witha voluntary option to receive compensatory time off for overtime work when there is an express, voluntary writtenrequest to the employer by an individual employee for compensatory time off in lieu of overtime pay before theperformance of any overtime assignment.

(b) The employee has not earned compensatory time in excess of the applicable limit prescribed by subdivision(d).

(c) The employee is not required as a condition of employment to accept or request compensatory time. An employershall not directly or indirectly intimidate, threaten, or coerce or attempt to intimidate, threaten, or coercean employee for the purpose of interfering with the employee's rights under this section to request or not requestcompensatory time off in lieu of payment of overtime compensation for overtime hours, or requiring an employeeto use compensatory time. In assigning overtime hours, an employer shall not discriminate among employees basedupon an employee's choice to request or not request compensatory time off in lieu of overtime compensation. Anemployer who violates this subsection is subject to a civil fine of not more than $1,000.00.

(d) An employee may not accrue more than a total of 240 hours of compensatory time. An employer shall do both ofthe following:

(i) Maintain in an employee's pay record a statement of compensatory time earned by that employee in the payperiod that the pay record identifies.

(ii) Provide an employee with a record of compensatory time earned by or paid to the employee in a statement ofearnings for the period in which the compensatory time is earned or paid.

(e) Upon the request of an employee who has earned compensatory time, the employer shall, within 30 days followingthe request, provide monetary compensation for that compensatory time at a rate not less than the regular rateearned by the employee at the time the employee performed the overtime work.

(f) An employee who has earned compensatory time authorized under this subsection shall, upon the voluntary orinvoluntary termination of employment or upon expiration of this subsection, be paid unused compensatory time ata rate of compensation not less than the regular rate earned by the employee at the time the employee performedthe overtime work. A terminated employee's receipt of or eligibility to receive monetary compensation for earnedcompensatory time shall not be used by either of the following:

(i) The employer to oppose an employee's application for unemployment compensation under the Michigan employmentsecurity act, 1936 (Ex Sess) PA 1, MCL 421.1 to 421.75.

(ii) The state to deny unemployment compensation or diminish an employee's entitlement to unemployment compensationbenefits under the Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.1 to 421.75.

(g) An employee shall be permitted to use any compensatory time accrued under this subsection for any reasonunless use of the compensatory time for the period requested will unduly disrupt the operations of the employer.

(h) Unless prohibited by a collective bargaining agreement, an employer may terminate a compensatory time planupon not less than 60 days' notice to employees.

(i) As used in this subsection:

(i) “Overtime compensation” means the compensation required under section 4a.

(ii) “Compensatory time” and “compensatory time off” mean hours during which an employee is not working and forwhich the employee is compensated in accordance with this subsection in lieu of monetary overtime compensation.

(iii) “Overtime assignment” means an assignment of hours for which overtime compensation is required under thisact.

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