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Home / Michigan Minimum Wage 2026: $13.73, Tipped Pay, and Overtime

Michigan Minimum Wage 2026: $13.73, Tipped Pay, and Overtime

Michigan’s minimum wage increased on January 1, 2026. Employers must update regular pay, tipped cash wages, youth rates, overtime calculations, posters, and payroll systems.

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Michigan Minimum Wage 2026: .73, Tipped Pay, and Overtime

Quick answer: Michigan’s 2026 minimum wage is $13.73. The tipped cash wage is $5.49, and the eligible 85% youth rate is $11.67.

2026 rates

Tipped workers

Michigan’s tipped percentage is 40% of the standard rate in 2026. Employers must ensure cash wages plus tips equal at least $13.73 each workweek and pay any shortage.

Overtime

Covered nonexempt employees generally receive overtime after 40 hours. A minimum-wage employee’s basic time-and-one-half rate is $20.595 before normal payroll rounding.

Tipped overtime cannot be calculated by multiplying $5.49 alone by 1.5.

Youth rate

The 85% rate applies only to eligible young workers under the statutory conditions. Age, hours, duties, and child-labor restrictions must be verified.

Payroll checklist

Frequently Asked Questions

What is the standard rate?

$13.73.

What is the tipped cash rate?

$5.49.

What is the youth rate?

$11.67 for eligible workers.

When is overtime due?

Generally after 40 hours.

Must tip shortages be paid?

Yes.

Official Sources

This article is for general educational purposes and is not legal, tax, accounting, payroll, or employment advice. Rules can change and may differ by state, locality, occupation, employer, and employee circumstances.

Reviewed for accuracy by the OvertimePayUSA editorial team using official labor sources such as the U.S. Department of Labor and state agencies.
Official Sources

This calculator is for educational purposes only. Consult your employer or a labor attorney for advice specific to your situation.

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Frequently Asked Questions

Can my employer require me to work overtime?
Yes. Employers can require overtime work. However, they must pay the required overtime premium (1.5x or higher per state law) for hours over the threshold. Refusing to work overtime may result in termination, but employers cannot refuse to pay overtime premiums that are legally owed.
What should I do if I think I'm owed unpaid overtime?
Document everything: save pay stubs, time records, emails, and any communications about hours worked. Calculate what you believe is owed. Contact your employer in writing first. If they don't respond satisfactorily, file a complaint with your state Department of Labor or the U.S. Department of Labor Wage and Hour Division. Consider consulting an employment attorney for large amounts.
Is my salaried position automatically exempt from overtime?
No. Many salaried positions still qualify for overtime pay. Exemption requires: (1) earning above the minimum threshold (~$35,500 federally, varies by state), and (2) spending more than 50% of time in exempt duties (executive, professional, administrative). If unsure, file a wage claim or consult an employment attorney.
Can I get overtime pay if I work multiple jobs?
Federal overtime laws (FLSA) typically count only hours for a single employer. However, some states have more generous rules. Hours worked for different employers at the same time usually don't combine for overtime purposes unless you're an independent contractor. Check your state's Department of Labor for specific rules.
What's the statute of limitations for claiming unpaid overtime?
Federally, you have 2-3 years to file a lawsuit for unpaid wages (3 years for willful violations). State laws vary: California allows 3-4 years, New York allows 6 years. For administrative complaints, the timeframe is often shorter (1-2 years). Act quickly if you believe you're owed wages.
Do I have to be paid for meal breaks?
If you work during a meal break or cannot take a true break away from your workstation, that time must be paid. If you take an actual, uninterrupted break (usually 20+ minutes), it can be unpaid. Rules vary by state—check your state's Department of Labor for specifics.
What is the youth rate?
$11.67 for eligible workers.
When is overtime due?
Generally after 40 hours.
⚖️ Statutory Legal Authority: Overtime pay calculations strictly follow the Fair Labor Standards Act (FLSA), 29 U.S.C. § 207 and U.S. Department of Labor (WHD) Regulations 29 C.F.R. Part 778. State daily overtime rules comply with California Labor Code § 510, Colorado COMPS Order #38, and Alaska Stat. § 23.10.060.