Federal FLSA Weekly Overtime: 1.5x past 40 hours for non-exempt employees
In Michigan, overtime compensation for non-exempt employees is governed by federal law, specifically the Fair Labor Standards Act (FLSA). This mandates payment at 1.5 times an employee's regular rate of pay for all hours worked over 40 in a workweek. Michigan does not have a separate state statute for overtime beyond referencing federal law in its Workforce Opportunity Wage Act.
Federal FLSA Weekly Overtime
Non-exempt employees must receive 1.5x their regular rate for hours exceeding 40 in a workweek, as defined by the FLSA.
What those rules do as a Michigan shift is created.
Teambridge automatically applies federal FLSA overtime calculations to ensure compliance for all non-exempt employees in Michigan. Our system continuously monitors hours worked and calculates the correct overtime pay, eliminating manual errors and reducing compliance risk.
Block miscalculated paychecks
Any hours logged over 40 in a single workweek for a non-exempt employee are automatically flagged and calculated at 1.5 times their federal regular rate of pay. This prevents underpayment and ensures compliance with FLSA Section 207.
Optimize regular rate calculation
Teambridge accurately determines the "regular rate of pay" by including all non-discretionary bonuses, shift differentials, and other forms of remuneration, as required by 29 CFR Part 778, ensuring proper overtime base rates.
Flag potential federal exemption issues
While Michigan has no state overtime exemption rules, Teambridge monitors employee salary levels against the federal FLSA threshold ($684/week for 2026) to flag potential misclassification risks for exempt status.
Stop worrying about Michigan compliance.
Teambridge handles the complexity of state and federal labor laws, so you can focus on your business. Get compliant, stay compliant.
Federal law dictates overtime for Michigan employers.
Michigan does not have its own specific state overtime statute that differs from federal law. Therefore, employers in Michigan must adhere to the federal Fair Labor Standards Act (FLSA) requirements regarding overtime pay.
29 U.S.C. § 207(a)(1)
"Except as otherwise provided in this section, no employer shall employ any of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, for a workweek longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed."
Regular Rate of Pay
The "regular rate of pay" is a critical component for calculating overtime and often misunderstood. It is not merely an employee's hourly wage, but generally includes all remuneration for employment paid to, or on behalf of, the employee, excluding certain statutory exceptions. This can include non-discretionary bonuses, shift differentials, and some commissions. The calculation of the regular rate is detailed in 29 CFR Part 778 and must be carefully applied to avoid underpayment of overtime.
No State Overtime Statute
While Michigan's Workforce Opportunity Wage Act (WOWA) governs minimum wage and other wage and hour provisions, it does not establish a separate state overtime rate or threshold different from the FLSA. Instead, WOWA (MCL 408.934) explicitly states that "An employee shall be paid 1-1/2 times the employee's regular rate of pay for employment in excess of 40 hours in a workweek." This directly mirrors the federal requirement, meaning Michigan employers default to FLSA standards for overtime.
Teambridge ensures Michigan overtime is always correct.
With Teambridge, you can confidently operate in Michigan knowing that every hour worked by your non-exempt employees is automatically tracked, categorized, and compensated according to federal FLSA rules. Our system takes the guesswork out of complex regular rate calculations and overtime thresholds.
Accurate hour logging
Employees clock in and out, and all hours are logged with precision, forming the foundation for accurate overtime calculations. Our system captures all working time, including breaks and meal periods, as required.
Automatic FLSA regular rate computation
Teambridge automatically calculates the FLSA "regular rate of pay" by incorporating all eligible earnings, such as hourly wages, non-discretionary bonuses, and shift premiums, ensuring a compliant overtime base.
1.5x overtime for hours over 40
Once the 40-hour workweek threshold is crossed, Teambridge automatically applies the 1.5x multiplier to the calculated regular rate for all subsequent hours, guaranteeing correct overtime pay.
Comprehensive audit trails
Maintain detailed records of all hours, pay rates, and overtime calculations, providing an indisputable audit trail for compliance verification and peace of mind during any potential inquiry.
People also ask.
Does Michigan have its own state overtime law?
No, Michigan does not have a separate state overtime law that differs from federal law. Michigan's Workforce Opportunity Wage Act (WOWA) defers to the federal Fair Labor Standards Act (FLSA) for overtime requirements. This means employers must pay 1.5 times the regular rate of pay for all hours worked over 40 in a workweek, as defined by the FLSA.
What is the "regular rate of pay" for overtime calculations in Michigan?
The "regular rate of pay" is defined by federal FLSA regulations (29 CFR Part 778). It includes not only the employee's hourly wage but also most other forms of compensation, such as non-discretionary bonuses, shift differentials, and certain commissions. It explicitly excludes things like gifts, reimbursed expenses, and discretionary bonuses. This rate must be calculated correctly to determine the accurate overtime premium.
Are there any exemptions from FLSA overtime in Michigan?
Yes, the FLSA provides exemptions for certain executive, administrative, professional, outside sales, and computer employees, often referred to as "white-collar" exemptions. To qualify, employees must meet specific duties tests and be paid on a salary basis at or above a certain threshold. For 2026, the federal salary threshold for most of these exemptions is $684 per week. Michigan does not have additional state-specific exemptions.
What is a workweek for overtime purposes in Michigan?
Under FLSA, a workweek is a fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods). It does not have to coincide with the calendar week. An employer can establish any day and time as the beginning of the workweek, but once established, it generally cannot be changed to avoid overtime payments.
What happens if an employer fails to pay proper overtime in Michigan?
Failure to pay proper overtime under the FLSA can lead to significant penalties. Employers may be liable for unpaid back wages, an equal amount in liquidated damages, and potentially attorney's fees and court costs. The U.S. Department of Labor (DOL) enforces the FLSA, and employees also have the right to file private lawsuits.
How does Michigan's minimum wage increase in 2026 affect overtime?
While Michigan's minimum wage is increasing to $13.73 on January 1, 2026, this directly impacts the straight-time hourly rate for minimum wage employees. Consequently, their regular rate of pay will be higher, leading to a higher overtime rate (1.5 times the new minimum wage or higher, depending on other earnings). The overtime threshold of 40 hours per week remains unchanged.