Michigan’s state minimum wage rate is $9.65 per hour.
In 2020, employers must pay tipped employees at least $3.67 an hour. This means that employers may take a tip credit of up to $5.98 an hour, as long as the employee makes at least $9.65 an hour with tips.
In calculating the overtime rate for the tipped employee, the restaurateur must multiply the minimum wage ($9.65 per hour) by 1½ (1.5), subtract the tip credit ($5.98 per hour), multiply that figure by the number of overtime hours worked, and then add that sum to their 40-hour total.
Michigan does not require employers to provide breaks, including lunch breaks, for workers eighteen (18) years old or older. An employer who chooses to provide a meal, lunch, or break period must complete relieve employees of their work duties for the break period to be unpaid.
Yes, employers are legally allowed to do this. When a tip is placed on a credit card, the Fair Labor Standards Act lets an employer deduct credit card processing fees from the tip, as long as that does not pull the employee’s wages below the minimum wage and the tip is paid by the regular payday.
For Michigan’s permanent paid sick time law, you earn 1 hour of sick time for every 35 hours worked, up to a maximum of 40 hours per year. Under the COVID-19 Executive Order, however, you do not have to accrue your leave in order to stay home from work.