Do salaried employees get paid overtime in Michigan?
Currently, salaried workers whose primary job responsibilities involve “executive, administrative or professional” duties and whose salaries are less than $23,660 per year – or $455 per week – must receive overtime pay.
How many hours can a salaried employee be forced to work in Michigan?
FSLA Workweek Laws It does not set a maximum workweek at 40 hours or any other length of time. Employees over the age of 15 can be assigned to work any workweek that they and the employer agree to. And they are not automatically entitled to overtime for weekends or holidays.
Who is exempt from overtime pay in Michigan?
Farm and agricultural workers, elected officials, seasonal camp workers, and under-18 childcare providers are all exempt from overtime completely, as are most white collar workers and anyone who is already exempted from Michigan’s minimum wage law.
What is the minimum salary for exempt employees in Michigan 2021?
Exempt employees who are not covered by a higher state rate will need to earn at least the new federal cutoff of $684 a week ($35,568 annualized) in the new year.
What are the rules for salaried employees in Michigan?
The “salaried” requirement is critical for exempt salaried employees to maintain their status under the FLSA. To be paid on a salary basis means that the employee receives a predetermined amount of compensation each pay period of at least $455 per week or $23,660 per year.
What are the salary requirements in Michigan?
As we reported in September, the Department of Labor has issued final rules increasing the minimum annual salary level paid to over-time exempt administrative, executive and professional employees from $23,660 to $35,568.
What is a salary employee in Michigan?
To be paid on a salary basis means that the employee receives a predetermined amount of compensation each pay period of at least $455 per week or $23,660 per year. No reduction of pay is allowed based upon the quality or quantity of work performed.
What is the exempt salary threshold in Michigan?
$35,568
As we reported in September, the Department of Labor has issued final rules increasing the minimum annual salary level paid to over-time exempt administrative, executive and professional employees from $23,660 to $35,568.
What is the minimum salary for exempt employees in Michigan 2020?
$35,568 per year
Following are key changes in the Fair Labor Standards Act pertaining to the salary threshold for overtime exemption: Increase the minimum salary threshold that exempts an employee from overtime pay from $23,660 to $35,568 per year, or $684 per week.
What makes an employee exempt in Michigan?
Michigan law exempts anyone employed in a bona fide executive, administrative, or professional capacity from state overtime pay requirements. When an employer is choosing to apply either state or federal law, the employer must apply the law that is most beneficial to the employee.
What is the minimum salary for an exempt employee in Michigan?
Do employers in Michigan have to pay overtime?
Just like the FLSA, the Michigan overtime law requires that non-exempt employees receive overtime pay equal to 1.5 x their regular hourly pay for any hours worked over 40 in a week (overtime).
What are the benefits of being on salary?
Salaried employees enjoy the security of steady paychecks, and they tend to pull in higher overall income than hourly workers. And they typically have greater access to benefits packages, bonuses, and paid vacation time.
What are the benefits of being on a salary?
Benefits of salaried pay
- Consistency: Your employees are guaranteed a certain amount every week or month excluding bonuses.
- Additional perks: Salaried employees are entitled to a number of paid days off every year.
- Higher wages: Salary workers generally have more responsibilities compared to their waged counterpart.
Is it better to paid in wages or salary?
Salaried employees are usually exempt from overtime and other employee protection laws. Wages refer to payment based on an hourly rate and the number of hours an employee works. Wages are popular with low-skill jobs that involve repetitive tasks, part-time roles, and jobs with irregular hours.
What are the disadvantages of being on salary?
Disadvantages of salaried pay
- Overtime: One of the main disadvantages of salaried pay is working overtime.
- Pay cuts: Companies going through tough financial periods slash expenses by cutting pay.
- Public holiday pay: Like overtime pay, waged workers are often paid more to work on public holidays like Christmas or Easter.
What are some disadvantages of salaried pay?
Disadvantages of Paying Salary Some employees won’t enjoy working on a salary either, as they may want to be able to switch or drop shifts. Salaries for non-exempt employees can lead to wage-and-hour violations. FLSA non-exempt employees must be paid overtime, which means you need to track their hours.