The purpose of MI labor laws is to make certain that employers treat their staff fairly. The state government implements regulations in order to protect Michigan employee rights concerning wages and fringe benefits and provide a safe working environment.
As a business owner, it may be difficult to fully grasp all of the regulations and restrictions that you must abide by in regard to your employees. An examination of Michigan labor and employment law basics reveals three main areas to get you started:
1. Employers must pay their employees comparable salaries or minimum wage and compensate employees fairly for overtime under Michigan labor laws.
2. Labor laws in Michigan maintain strict regulations regarding the employment of minors.
3. An employer must maintain workers’ compensation insurance to protect his or her business and employees under Michigan work laws.
Pay your employees appropriately under Michigan labor and employment lawBusinesses employing two or more employees must pay those employees the state or federal established minimum wage at that time, whichever is higher. Additionally, there is a requirement to pay time an a half (1.5 times the regular hourly wage they receive) to employees for each hour worked over 40 hours in one week's time.
U.S. Department of Labor provides a quick reference for the current minimum wage in Michigan. You must hang a minimum wage poster at your business for employees to see. Visit LaborLawCenter to purchase professionally printed MI labor law posters.
Apply Michigan employment laws regarding youth employmentUnder Michigan state labor laws for youth, your business cannot employee someone under the age of 18 unless that person has a work permit. Employees under the age of 16 cannot work between the hours of 9 p.m. and 7 a.m. nor more than 48 hours in one week. While in school, the combination of hours in school and hours at work cannot exceed 48 hours in one week.
Michigan Department of Labor & Economic Growth lists the restrictions regarding the type of employment that minors can engage in. Implement the Safety & Health Management Systems eTool provided by the Occupational Safety & Health Administration to create a safe working environment for youth employees.
Protect your business under Michigan labor law with workers' compensation insuranceLabor law in Michigan requires employers to maintain workers' compensation insurance to protect employees and their families if injury or death occurs on the job. The burden of proof that the injury occurred while working is on the employee. However, employers may have to cover medical expenses prior to the conclusion of litigation.
- Michigan labor laws require business owners with employees to contribute quarterly to the state's unemployment insurance fund, which provides income to employees who lose their jobs through no fault of their own (such as layoffs). Employers file form UIA 1020 to calculate the unemployment tax they owe each quarter.