Michigan defaults to the federal $684/week FLSA exempt salary threshold for white-collar workers.
Michigan does not have its own separate salary threshold for exempt employees. Employers in Michigan must adhere to the federal Fair Labor Standards Act (FLSA) salary basis test, which requires administrative, executive, and professional employees to be paid at least $684 per week on a salary basis to qualify for exemption from overtime and minimum wage requirements. This federal standard controls.
FLSA Exempt Classification
Validates exempt status against federal $684/week salary basis and duties tests. Federal threshold controls in Michigan.
What those rules do as a Michigan shift is created.
Teambridge continuously monitors employee classifications against the FLSA requirements. For Michigan employees, the system validates that any claimed exemption meets both the federal salary threshold and the duties test, ensuring compliance with federal wage and hour laws which Michigan defers to on this matter.
Salary Basis Check
Before classifying an employee as exempt, Teambridge verifies that their scheduled compensation meets or exceeds the federal minimum of $684 per week on a salary basis. If not, the system flags the employee for non-exempt status.
Duties Test Enforcement
Teambridge prompts for confirmation that an employee's primary duties align with the FLSA's administrative, executive, or professional exemption criteria. Misclassification is prevented by requiring affirmative verification of duties.
Overtime Eligibility Adjustment
For employees who do not meet the federal exempt criteria, Teambridge automatically adjusts their classification to non-exempt, ensuring they are eligible for overtime pay for hours worked over 40 in a workweek, in accordance with FLSA.
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Michigan defers to federal FLSA rules for exempt employee classification, requiring a $684/week salary basis and specific duties.
In Michigan, employers must classify employees as exempt from minimum wage and overtime requirements based on federal FLSA criteria. There is no separate Michigan state salary threshold or duties test; the federal standards prevail. This means employees must meet both the salary basis test (paid at least $684 per week) and the duties test for executive, administrative, or professional exemptions.
The Michigan Workforce Opportunity Wage Act (WOWA) references the federal Fair Labor Standards Act (FLSA) for overtime and minimum wage exemptions. Specifically, MCL 408.934(4) states: "The overtime compensation provisions of this act do not apply to an employee who is subject to the minimum wage and overtime compensation provisions of the fair labor standards act of 1938, 29 USC 201 to 219, and who is exempt from the minimum wage and overtime compensation provisions of that act."
Federal Salary Basis Test
To qualify for exemption under the FLSA, an employee must be paid on a salary basis, meaning they receive a predetermined amount of compensation each pay period that is not subject to reduction because of variations in the quality or quantity of work performed. As of January 1, 2020, this salary must be at least $684 per week ($35,568 annually). Michigan employers must adhere to this federal minimum.
Federal Duties Test
Beyond the salary basis, an employee's primary job duties must meet the specific requirements for executive, administrative, or professional exemptions as defined by the FLSA. These duties generally involve managing other employees, exercising discretion and independent judgment in significant matters, or performing work requiring advanced knowledge in a field of science or learning. Michigan law does not provide an alternative duties test.
Teambridge ensures your Michigan exempt classifications are always compliant with federal standards.
Teambridge integrates federal FLSA exempt classification rules directly into your HR and payroll workflows. From employee onboarding to ongoing status reviews, we automatically apply the $684/week salary threshold and guide you through the duties test requirements, minimizing the risk of misclassification and associated penalties.
Automated Classification Prompts
During employee setup, Teambridge prompts for all necessary information to assess exempt status, including proposed salary and a detailed breakdown of primary job duties, ensuring all FLSA criteria are considered from day one.
Continuous Salary Verification
Our system continuously monitors employee salaries against the federal $684/week threshold. Any salary adjustments that fall below this minimum for an exempt employee trigger an alert and suggest reclassification to non-exempt.
Structured Duties Assessment
Teambridge provides structured questionnaires and guidance to help you accurately apply the FLSA duties test, ensuring that administrative, executive, and professional exemptions are only applied when legally appropriate.
Comprehensive Compliance Records
All classification decisions and supporting documentation are securely stored and easily accessible, providing a clear audit trail for any state or federal wage and hour inquiries.
People also ask.
Does Michigan have its own exempt salary threshold?
No, Michigan does not have a separate state-specific salary threshold for exempt employees. Employers in Michigan must comply with the federal Fair Labor Standards Act (FLSA) salary threshold, which is currently $684 per week ($35,568 annually) as of January 1, 2020.
What are the requirements for an employee to be considered exempt in Michigan?
To be considered exempt in Michigan, an employee must meet two federal FLSA criteria: (1) the salary basis test, meaning they are paid a fixed salary of at least $684 per week, and (2) the duties test, meaning their primary job duties fall within the executive, administrative, or professional categories as defined by the FLSA.
What happens if an employee is misclassified as exempt?
Misclassifying an employee as exempt can lead to significant penalties. If an employee is found to have been misclassified, the employer may be liable for unpaid overtime wages, liquidated damages, attorneys' fees, and civil penalties under federal law. Michigan's Workforce Opportunity Wage Act also references FLSA for these provisions.
Does the Michigan minimum wage increase affect exempt status?
While Michigan's minimum wage increased to $13.73/hour on January 1, 2026, this change directly impacts non-exempt employees. It does not alter the federal $684/week salary threshold for exempt status, which remains the controlling factor for qualifying white-collar exemptions.
Are highly compensated employees treated differently for exemption in Michigan?
Michigan follows the federal FLSA rules for highly compensated employees (HCE). An employee earning $107,432 or more annually (as of 2020) may qualify for exemption if they customarily and regularly perform at least one of the exempt duties of an executive, administrative, or professional employee.
Can Teambridge help ensure my exempt classifications are correct in Michigan?
Yes, Teambridge automates the process of validating exempt classifications against federal FLSA requirements. Our system monitors the federal $684/week salary threshold and provides tools and guidance to help you accurately apply the duties test, ensuring compliance for your Michigan workforce.