Wage-and-hour ground rules for hotel and hospitality employers in Michigan — minimum wage, tipped-employee rules, overtime, breaks, premium pay, and the hotel-specific obligations that apply on top. General minimum and tipped wage rates were reviewed on October 18, 2026; effective dates and source-specific rule updates appear below.

Rate review: October 18, 2026. Apply the rate for the work date, location, occupation, and employer tier. The linked statutes, rules, and agency guidance control the coverage and exceptions. How we verify →

Minimum wage
$13.73
effective January 1, 2026
Tipped cash minimum
$5.49
max tip credit $8.24
Daily overtime
None
None (40-hr week)
Meal / rest breaks
No
meal: Not required · rest: Not required

Minimum wage#

The Michigan minimum wage is $13.73 per hour, effective January 1, 2026. Set by the Feb. 21, 2025 compromise legislation (PA 6 of 2025, amending the Improved Workforce Opportunity Wage Act) enacted after Mothering Justice v. Attorney General (Mich. 2024) reinstated the 2018 ballot initiative: $12.48 (2/21/2025), $13.73 (1/1/2026), $15.00 (1/1/2027), then annual CPI-based adjustments calculated by the state treasurer (the rate continues to index after the last fixed step).

Scheduled changes
New rateEffectiveNotes
$15.00January 1, 2027

Preemption Michigan preempts local minimum wage ordinances — cities and counties cannot set their own general wage floors.

Tipped employees & tip pooling#

Michigan allows a tip credit: employers may pay tipped employees a cash wage of $5.49 and claim up to $8.24 per hour in tips toward the minimum wage. Tipped cash wage is a statutory PERCENTAGE of the full minimum wage: 38% (2025), 40% (2026) = $5.49, rising to 42% on 1/1/2027 ($6.30 at the $15.00 rate), 44% (2028), 46% (2029), 48% (2030), and capped at 50% from 2031. Tips plus cash wage must equal the full minimum wage; employer must be able to document tips received. The 2025 compromise preserved the tip credit that the reinstated ballot initiative would have phased out entirely. 2026 operative figures: $5.49 cash + up to $8.24 credit (employee must average at least $8.24/hr in tips for the credit to be fully available).

Tip pooling#

No Michigan-specific pooling statute; FLSA rules apply (no employer/manager/supervisor retention; traditional pools when credit taken). IWOWA requires that the tipped percentage rate plus reported tips reach the full rate. (MCL 408.934d; 29 U.S.C. 203(m))

See the federal baseline rules in our tip credit and tip pooling briefs — the stricter of federal or Michigan law controls.

Overtime#

Overtime is due after 40 hours in a workweek. 40-hour weekly standard under IWOWA (MCL 408.934a); no daily overtime.

Run the math — including the tipped-overtime trap — with the tipped overtime calculator.

Meal & rest breaks#

Meal breaks: Not required by Michigan law for adult employees. Under federal law, short rest breaks of about 5 to 20 minutes count as paid working time.

Rest breaks: Not required by Michigan law.

Scheduling & premium pay#

  • Reporting-time pay: None required by state law.
  • Split-shift premium: None.
  • Spread of hours: None.

Service charges & gratuities#

Michigan has no service-charge-specific statute — the federal tip/service-charge line (and IRS treatment) controls. Background: service charges, auto-gratuities & resort fees.

Pay administration#

  • Pay frequency: Semimonthly schedule under the Payment of Wages and Fringe Benefits Act (MCL 408.472); monthly permitted for some pay plans, weekly/biweekly common.
  • Wage statements: Each payday employers must furnish a statement of hours, gross wages, pay period dates, and itemized deductions (MCL 408.476). (MCL 408.476)
  • Exempt salary floor: $684.00/week (federal) — Federal $684/week applies; Michigan has no higher state salary floor.
  • Lodging credit: Meals/lodging may be credited per FLSA reasonable-cost standards; Michigan adds no special hotel housing credit.

Local wage ordinances are preempted by the Local Government Labor Regulatory Limitation Act (2015 PA 105). Companion Feb. 2025 legislation also rewrote the Earned Sick Time Act (ESTA) — hotels must provide earned sick time (1 hr per 30 worked) under the amended ESTA alongside the new wage schedule. Watch the annual Jan. 1 tipped-percentage step-ups through 2031.

Sources and further reading#

Government agencies and official publishers appear first. Independently hosted legal texts and secondary reporting are identified separately below.

Official sources

Additional reporting and commentary

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