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Capital City
Lansing
Timezone
CST
(
GMT-6
)
Paid Leave
None
Income Tax
4.25%
Employer Tax
13.65%
Capital City
Lansing
Timezone
CST
(
GMT-6
)
Paid Leave
None
Income Tax
4.25%
Employer Tax
13.65%
Michigan is home to a diverse and talented workforce, especially in manufacturing, tech, and engineering. Whether you're looking for automotive experts or innovative tech minds, Michigan's talent pool is hard to beat.
Employees in Michigan enjoy a unique mix of urban and outdoor living, from bustling Detroit to the serene Great Lakes. This balance makes it easier to attract and retain happy, motivated team members.
With competitive tax incentives and business-friendly initiatives, Michigan creates an environment where companies—and their employees—can thrive together.
To employ workers in Michigan, you’ll need both an Employer Identification Number (EIN) and a Michigan Payroll Tax Number.
In Michigan, standard working hours and overtime requirements are primarily regulated by the Fair Labor Standards Act (FLSA) and state laws.
Generally, full-time work is considered 40 hours per week.
There is no mandated state law that specifies the duration or terms of a probation period for new employees. Instead, probationary periods are typically defined by employers’ policies and often last between 30 to 90 days, though they can extend up to six months or more depending on the employer's preference and the role's requirements.
Michigan's minimum wage is $10.33 per hour.
Michigan's anti-discrimination framework is primarily governed by the Elliott-Larsen Civil Rights Act (ELCRA), enacted in 1976. This legislation prohibits discrimination in employment, housing, education, and public accommodations based on various protected characteristics.
Payroll cycles vary depending on employer preference and industry standards, but the most common types are:
Based on the total tax liability reported during a lookback period, employers are assigned either a monthly or semi-weekly deposit schedule.
Pensions are not mandatory for private-sector employers in Michigan. However, certain public sector employees may have access to mandatory pension plans.
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Vacation leave is not mandatory in Michigan. Employers in Michigan are not required by state law to provide paid or unpaid vacation leave.
In Michigan, Paid Time Off (PTO) policies, including vacation time and personal days, are generally at the discretion of employers.
In Michigan, there is no state-mandated maternity leave. Employees rely on the federal Family and Medical Leave Act (FMLA), which provides unpaid, job-protected leave for eligible employees to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any maternity leave would depend on the employer’s policies. Some companies may offer paid maternity leave voluntarily as a benefit.
In Michigan, there is no state-mandated paternity leave. Eligible employees may qualify for unpaid, job-protected leave under the federal Family and Medical Leave Act (FMLA) to care for a newborn, adopted child, or newly placed foster child. If FMLA doesn’t apply, any paternity leave would depend on the employer’s specific policies, as Michigan law does not provide additional leave requirements for paternity.
Under Michigan's Paid Medical Leave Act, eligible employees at larger companies can earn paid sick leave for personal or family health needs, with accrual capped at 40 hours per year. Smaller employers, with fewer than 50 employees, are not required to offer paid sick leave but may choose to implement their own policies.
Military leave is governed by both federal and state laws, ensuring that employees who serve in the uniformed services are granted specific rights and protections. Employers must grant a leave of absence to employees for the purpose of being inducted into or entering active service, active state service, or the service of the United States.
Michigan law prohibits employers from discharging, disciplining, or threatening employees due to jury service. Employers are also forbidden from requiring employees to work additional hours to compensate for time spent on jury duty.
Federal FMLA provisions offer unpaid parental leave for eligible employees, while paid parental leave in Michigan largely depends on employer policies.
In Michigan, employers are required to provide certain benefits to their employees, while others are optional but commonly offered to attract and retain talent. Mandatory Benefits include:
Under the Affordable Care Act (ACA), employers with 50 or more full-time employees are required to offer health insurance that meets minimum essential coverage standards. Employers with fewer than 50 full-time employees are not required by law to provide health insurance.
Benefits for part-time employees largely depend on employer policy, as state and federal laws do not mandate most benefits for part-time workers.
Employers are not required to offer a 401(k) or any other retirement plan to their employees. The decision to provide such benefits is at the discretion of the employer.
The termination process for employees is governed by at-will employment principles, which means either the employer or the employee can terminate the employment relationship at any time, for any reason, as long as it is not illegal.
Michigan does not require employers to provide advance notice of termination unless specified in an employment contract or union agreement. Michigan law requires that employees receive their final paycheck by the next scheduled payday after termination. This includes all earned wages, including unpaid vacation if the employer's policy allows for it.
Michigan employment laws do not require employers to provide severance pay upon termination unless specified in an employment contract, company policy, or a collective bargaining agreement.
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As of January 1, 2024, Michigan’s minimum wage rates are:
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