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- Generally, employers have the discretion to schedule their employees' work hours according to their business needs. The Wage and Hour Division within the U.S. Department of Labor administers the Fair Labor Standards Act. Employers are not required to provide their employees with full-time work hours, and the Fair Labor Standards Act allows employers to reduce their employees' work hours, schedule employees for part-time work and change their schedules to accommodate their business needs.
Minimum Wage Law
- Michigan law allows employers to hire their adult employees to work unlimited work hours as long as they comply with the Fair Labor Standards Act. The Michigan Minimum Wage Law applies to employers with at least two employees over 15, and covered employers must pay their employees at least $7.40 per hour, current as of September 2011. Employers can pay their minor employees $7.25 per hour. Furthermore, employers can pay their tipped employees a minimum hourly tip wage of $2.65 per hour, but they must make up the difference if tipped employees receive less than $7.40 per hour after tips plus minimum hourly tip wage.
Overtime Compensation Law
- Employers who are required to comply with the Michigan Minimum Wage Law must pay their nonexempt employees at least time and one-half if they work over 40 hours per week. Similar to the federal overtime requirements, Michigan employers are not required to pay exempt employees overtime compensation. Exempt employees include professional, administrative or supervisory employees, recreational establishment employees who work seasonally, agricultural workers and politicians. In limited circumstances, employers can pay their employees for their overtime hours by providing compensatory time in lieu of monetary compensation. Employers can pay their employees by giving them "comp time" for their overtime work if their employees agree to compensatory time pay in writing. Compensatory time -- paid time off -- in lieu of monetary overtime compensation is limited to 240 hours annually.
- The Michigan Unemployment Insurance Agency requires employers to fund the state's unemployment insurance program. Qualified workers are eligible to receive unemployment benefits if their employers terminated them for a lack of available employment and they have earned a sufficient amount of unemployment work credits. Generally, Michigan unemployment benefits are available for full-time employees who are completely unemployed or are required to work reduced work hours. Furthermore, unemployed claimants must register for work and look for full-time employment.