Michigan HR Compliance Guide for Employers

Michigan underwent one of the most significant waves of employment law reform in its history between 2023 and 2025. In the span of two years, the state repealed its right-to-work law, expanded its anti-discrimination statute to cover LGBTQ+ workers, restored a more robust paid sick leave law covering all employers regardless of size, accelerated its minimum wage schedule to reach $15 per hour by 2027, and saw its Supreme Court strike down a decade-old legislative maneuver that had weakened employee protections. For employers who have not updated their compliance practices since 2022, the gap between what was required then and what is required now is substantial.

Michigan also has several long-standing compliance features that catch out-of-state employers off guard: 24 cities with local income taxes requiring separate employer registration, an anti-discrimination law that applies from the first employee, unique protections for height and weight discrimination, and a Toussaint doctrine that can convert employee handbooks into binding employment contracts. FirstHR was built to help small businesses manage exactly this kind of layered, rapidly changing compliance environment without a dedicated HR team.

Michigan Compliance at a Glance

Five compliance traps catch Michigan employers most often, particularly those expanding from other states or operating under outdated assumptions.

Employment Law Basics

At-Will Employment and Michigan's Toussaint Doctrine

Michigan is an at-will employment state by common law. Either party may terminate the employment relationship at any time for any reason. But Toussaint v. Blue Cross and Blue Shield of Michigan (408 Mich 579, 1980) created powerful exceptions that remain among the most employer-impactful doctrines in any state.

The Toussaint court held that employer handbooks, policies, and procedures can create a "legitimate expectation" of just-cause termination, enforceable even if the employee was unaware of the policy at hiring. Oral promises of job security can also bind an employer if they are sufficiently clear and unequivocal. Rowe v. Montgomery Ward (437 Mich 627, 1991) later refined this to require "special circumstances" for oral promises, but handbook-based claims remain highly viable. The public policy exception from Suchodolski v. Michigan Consolidated Gas Co. (412 Mich 692, 1982) prohibits termination for exercising statutory rights or refusing to violate the law. For a complete framework on building a compliant Michigan handbook that avoids Toussaint exposure, see the how to create an employee handbook.

Right-to-Work Repeal: What Changed on February 13, 2024

Michigan enacted right-to-work legislation in 2012 under Governor Snyder (PA 349 of 2012, effective March 28, 2013). Governor Whitmer signed its repeal on March 24, 2023 (PA 8 of 2023, SB 34). Michigan became the first state in 58 years to repeal a right-to-work law. The repeal took effect February 13, 2024 (90 days after the legislature's November 14, 2023 adjournment). A $1 million appropriation attached to the bill makes it referendum-proof under the Michigan Constitution.

What this means: union security clauses in collective bargaining agreements are again legally permissible. Unions may negotiate provisions requiring employees to pay dues or fees as a condition of continued employment. For non-unionized businesses, the near-term practical impact is limited, but the repeal removes a structural barrier to organizing. Train managers on lawful responses to organizing activity before it becomes necessary. The public-sector companion (PA 9 of 2023) is effectively inapplicable due to Janus v. AFSCME (2018 U.S. Supreme Court), which prohibits mandatory union fees for government employees.

Whistleblowers' Protection Act and Worker Classification

Michigan's Whistleblowers' Protection Act (WPA, MCL 15.361, Act 469 of 1980) covers all employers with 1 or more employees. It protects employees who report or are about to report suspected violations of law or regulation to a public body. Remedies include reinstatement, back pay, and attorney fees. The statute of limitations is 90 days from the alleged retaliatory act. Employers must post a WPA notice in the workplace. Stefanski v. Saginaw County 911 (Mich. April 14, 2025) confirmed that "law" under WPA includes common law, expanding its reach.

Worker classification in Michigan uses multiple tests depending on the legal context. General employment law applies the economic reality test (totality of circumstances). Unemployment insurance uses the IRS 20-factor test (behavioral control, financial control, relationship factors) for services performed after January 1, 2013. SB 6 (2025) proposes a strict ABC test similar to California's AB 5, but had not been enacted as of March 2026. Penalties for misclassification include criminal charges under the Workers' Compensation Act, unpaid UI taxes, and civil fines up to $1,000 under IWOWA. For proper contractor onboarding documentation, see the contractor onboarding guide.

Hiring and Onboarding in Michigan

Background Checks, Drug Testing, and Pay Transparency

Michigan has no statewide ban-the-box law for private employers. Executive Directive 2018-4 (October 1, 2018) applies only to state government agencies and delays criminal history inquiry to the interview stage. Local ban-the-box ordinances in Detroit, Ann Arbor, and East Lansing apply to public employer and contractor hiring only. Private employers in Michigan may ask about criminal history on applications. Michigan's Clean Slate Act automatically seals certain convictions after 7 to 10 years, which may affect background check results from consumer reporting agencies subject to FCRA.

Michigan legalized recreational cannabis under the MRTMA (MCL 333.27951 et seq., 2018). Private employers retain full rights to maintain zero-tolerance drug-free workplace policies, test applicants and employees for cannabis including recreational use, and take adverse action based on positive results. The MRTMA explicitly does not restrict employer rights. The Michigan Medical Marihuana Act similarly requires no workplace accommodation. Document your drug testing policy clearly in your employee handbook and apply it consistently. For a complete onboarding documentation checklist, see the onboarding documents for new hires.

Michigan does not have a pay transparency requirement as of March 2026. Pending legislation (HB 4406, SB 142) would require wage information in job postings but had not been enacted. Pay equity in Michigan is enforced through ELCRA (MCL 37.2202), which prohibits compensation discrimination based on all protected classes. There is no standalone equal pay act. Wage discussion is protected: MCL 408.483a prohibits employers from retaliating against employees who discuss their wages with coworkers. A salary history ban under Executive Directive 2019-10 applies only to state and local government agencies, not private employers.

Wages, Overtime, and Pay Rules

Michigan Minimum Wage: The New Schedule Under SB 8

The Michigan Supreme Court's July 2024 decision in Mothering Justice v. Attorney General restored the original 2018 ballot initiative (ESTA and minimum wage schedule), which the legislature had weakened through an adopt-and-amend maneuver. The legislature responded with SB 8 (PA 1 of 2025), signed February 21, 2025, which accelerated the minimum wage path while preserving the tip credit. The old PMLA-era schedule no longer applies.

Key points: the minimum wage applies to employers with 2 or more employees aged 16 and over. The training wage of $4.25 per hour applies to employees under 20 during their first 90 calendar days of employment. Minors under 16 are not covered by IWOWA but must receive at least the federal minimum of $7.25 per hour. For minors under 18, MCL 409.112 (Youth Employment Standards Act) requires a break of at least 30 minutes for every 5 continuous hours worked. This break cannot be waived. Tip credit is preserved but the tipped percentage rises 2% annually from 40% in 2026 to 50% by 2031. Tips plus cash wage must equal the full minimum wage in every workweek; the employer must cover any shortfall. A $2,500 civil penalty applies for tipped wage violations under SB 8. Governor Whitmer signed HB 4961 in October 2025, exempting tip income and overtime premium pay from Michigan state income tax for tax years 2026 through 2028. For payroll setup including first-paycheck compliance, see the tax forms for new employees.

Overtime: Michigan's Unique Comp Time Provision

Michigan has no meal or rest break requirements for employees 18 years of age or older. Federal FLSA rules apply: short breaks up to 20 minutes must be paid; breaks of 30 minutes or more are unpaid if the employee is fully relieved of duties. These onboarding policy requirements apply to all Michigan employers regardless of size.

Michigan overtime is governed by the Improved Workforce Opportunity Wage Act (IWOWA, MCL 408.934a). The rate is 1.5 times the regular rate for hours over 40 in a workweek. There is no daily overtime and no double time. SB 8 (PA 1 of 2025) eliminated an exclusion that had allowed very small employers to avoid Michigan OT provisions; now all Michigan employers must comply regardless of FLSA coverage, which is significant for employers who had relied on a lack of FLSA coverage to avoid overtime obligations.

Michigan has a unique private-sector compensatory time provision that goes beyond what federal FLSA permits (which restricts comp time to public employers). Michigan employers may offer compensatory time off in lieu of overtime cash pay at a rate of 1.5 hours per overtime hour worked, up to a maximum accumulation of 240 hours. This requires a voluntary written agreement with the employee and the employer must also provide a minimum of 10 paid annual leave days. Penalties for OT violations: fine up to $1,000 per violation, employees may recover unpaid wages plus equal liquidated damages plus attorney fees.

Pay Stubs, Frequency, and Final Paycheck

Michigan's Payment of Wages and Fringe Benefits Act (MCL 408.479(2)) requires every pay statement to include hours worked, gross wages, pay period identification, and an itemized list of all deductions. Electronic statements are permitted if the employee can print them at time of payment. Exempt employees are excused from the hours-worked requirement. Records must be retained for 3 years.

Pay frequency minimums under MCL 408.472: Michigan requires at minimum semimonthly pay. Wages earned the 1st through 15th of a month must be paid by the 1st of the following month; wages earned the 16th through the last day must be paid by the 15th of the following month. For weekly or biweekly pay periods, wages must be paid within 14 days of the period end. Direct deposit is permitted with authorization; payroll debit cards are permitted with written disclosures. Final paychecks are due on the next regularly scheduled payday for the pay period in which separation occurred (MCL 408.475). There is no immediate payment requirement. Penalties: 10% annual penalty from date of complaint notification until payment; repeat violations trigger punitive damages up to twice the amount owed plus attorney fees.

ESTA Paid Sick Leave: The Number One Michigan Compliance Issue

The Earned Sick Time Act story is the most important compliance narrative in Michigan for 2025 and beyond. Understanding the history is essential to understanding what the law requires today.

How We Got Here: From Ballot Initiative to PMLA to ESTA

In 2018, Michigan voters' signatures were gathered for the ESTA ballot initiative. The legislature used a constitutional maneuver called "adopt and amend": they adopted the initiative in September 2018 to prevent it from appearing on the ballot, then immediately amended it in December 2018 to create the much weaker Paid Medical Leave Act (PMLA). The PMLA exempted employers with fewer than 50 employees, accrued at 1 hour per 35 hours worked, and capped usage at 40 hours per year. The Michigan Supreme Court ruled in Mothering Justice v. Attorney General (July 31, 2024) that the adopt-and-amend approach was unconstitutional, voiding the PMLA and restoring the original 2018 ESTA. The legislature passed HB 4002 with midnight amendments and Governor Whitmer signed it at 12:02 AM on February 21, 2025, creating the amended ESTA that is current law. All employers should have been in full compliance since October 1, 2025.

Employee coverage is broad: nearly all employees including exempt salaried, part-time, and temporary workers are covered. Excluded are federal employees, unpaid interns, trainees, youth employees covered by the Youth Employment Standards Act, and self-scheduling employees. The "small employer" threshold of 10 or fewer employees counts all workers nationwide including full-time, part-time, temporary, and staffing agency workers during a given week. An employer is classified as large if it employed 11 or more workers in any 20 or more workweeks in the current or preceding calendar year, and remains large through the end of the following year.

Permitted uses under MCL 408.964 include the employee's own illness or injury, care for a family member, situations related to domestic violence or sexual assault (medical care, counseling, relocation, legal assistance, or victim services), public health emergency closures of the workplace or school, communicable disease exposure, and school meetings related to a child's health, disability, or domestic violence situation. "Family member" is defined broadly to include biological, adopted, foster, and step children, parents, grandparents, grandchildren, siblings, spouses, domestic partners, and anyone with a family-equivalent relationship.

Documentation requirements: employers may only require documentation after 3 or more consecutive days of absence, and employees have 15 days to provide it. Employers must pay the employee's out-of-pocket costs for obtaining required documentation. Notice requirements: foreseeable absences up to 7 days in advance; unforeseeable absences per the employer's written policy (adopted after February 21, 2025). Employers cannot require an employee to find their own replacement. No payout is required at termination for unused ESTA sick time. Enforcement: administrative complaints to LEO only (HB 4002 removed the private right of action). Penalties: 8 times the employee's hourly wage per ESTA violation; $1,000 civil penalty for retaliation; $100 for notice or posting violations. For a broader compliance onboarding framework, see the compliance onboarding.

Other Leave Requirements

Michigan has no state FMLA equivalent and no state family leave program beyond federal FMLA. Jury duty leave is job-protected but unpaid under MCL 600.1348. Employers cannot require employees to use PTO for jury service and cannot require overtime work on days when an employee serves at least 4 hours in court or attends a jury selection proceeding. Violation is a misdemeanor with a fine up to $500 and up to 90 days imprisonment, plus potential contempt of court. Military leave supplements federal USERRA under MCL 32.271 through 32.274; violation is a misdemeanor. Michigan has no voting leave statute, though employers cannot discharge or threaten employees for voting.

Anti-Discrimination: ELCRA and Michigan's Expansive Protections

Michigan's Elliott-Larsen Civil Rights Act (ELCRA, MCL 37.2101 et seq., PA 453 of 1976) is one of the most expansive state anti-discrimination statutes in the country. Its most important feature: it applies to employers with 1 or more employees, far broader than federal Title VII's 15-employee threshold. The Persons with Disabilities Civil Rights Act (PDCRA, MCL 37.1101 et seq.) similarly covers employers with 1 or more employees, compared to the ADA's 15-employee floor, and allows individual supervisor liability.

Protected classes under ELCRA as of 2025: religion, race, color, national origin, age, sex (including pregnancy, childbirth, and pregnancy termination since the 2023 amendment), sexual orientation (added February 13, 2024 under Act 6 of 2023), gender identity or expression (added February 13, 2024), height, weight, familial status, marital status, and hair texture and protective hairstyles (CROWN Act, signed June 15, 2023). The height and weight protections are nationally distinctive. ELCRA also contains a BFOQ exception (MCL 37.2208) allowing religion, national origin, age, height, weight, or sex to be a bona fide occupational qualification when reasonably necessary to normal business operations.

The 2023 LGBTQ+ amendment (SB 4, signed March 16, 2023, effective February 13, 2024) defines sexual orientation as orientation for heterosexuality, homosexuality, or bisexuality, and gender identity or expression as gender-related self-identity or expression whether or not associated with assigned sex at birth. The amendment applies to all ELCRA articles covering employment, public accommodation, education, and housing. Michigan became the 24th state to add explicit LGBTQ+ employment protections. The amendment was preceded by Rouch World, LLC v. Department of Civil Rights (Mich. Supreme Court, July 28, 2022), which had already held that sex discrimination under ELCRA encompasses sexual orientation.

ELCRA enforcement: complaints with Michigan's Department of Civil Rights (MDCR) within 180 days, or directly in state court within 3 years. Remedies include reinstatement, back pay, front pay, emotional distress damages, and attorney fees. No mandatory administrative exhaustion before filing in court. Sexual harassment training is not mandated by Michigan statute for private employers, though the MDCR is required to offer training programs. Strong recommendation: provide regular training as evidence of good faith and a potential affirmative defense. For anti-discrimination policy templates, see the sample employee handbook.

Workplace Safety: MIOSHA and Workers Compensation

Michigan operates a comprehensive state OSHA plan through MIOSHA (MCL 408.1001 et seq.). MIOSHA covers both private sector and state and local government workers, which is broader than federal OSHA coverage in non-plan states. Standards must be at least as effective as federal OSHA. MIOSHA is part of Michigan's Department of Labor and Economic Opportunity since 2019 and takes an "Educate Before We Regulate" approach with free consultation services available. Federal OSHA retains jurisdiction over federal employees, maritime employment, USPS contractors, tribal businesses on reservations, aircraft cabin crews, and mining operations in Michigan.

Report to 1-800-858-0397 (24-hour hotline) or online. MIOSHA recordkeeping: employers with 11 or more employees must maintain MIOSHA/OSHA Forms 300, 301, and 300A. Form 300A must be posted February 1 through April 30 annually. Employers with 250 or more employees (or 20-249 in designated industries) must electronically submit Form 300A to federal OSHA. The Michigan Employee Right-to-Know Act (PA 180 of 1986) requires SDS availability, posting, pipe identification, and chemical training for workplaces with hazardous chemicals.

Workers' compensation (Workers' Disability Compensation Act) is mandatory for: private employers with 1 or more employees working 35 or more hours per week for 13 or more weeks in the preceding 52 weeks; private employers with 3 or more employees at any one time (including part-time); and agricultural employers with 3 or more employees working 35 or more hours per week for 13 or more consecutive weeks. Four compliance methods are available: private insurance carrier, assigned risk pool (CAOM), self-insured group fund with WDCA approval, or individual self-insurance with WDCA approval. Benefits: 80% of average weekly wage, all necessary medical care, vocational rehabilitation, and death benefits including funeral costs up to $6,000. Employer may select the treating physician for the first 28 days. File Form WC-100 with WDCA and carrier for disability exceeding 7 consecutive days, death, or specific loss. Penalties for non-coverage: fine up to $1,000 and 30 days to 6 months imprisonment; each uninsured day is a separate violation. Details at Michigan Workers' Compensation Agency.

Payroll and Tax Compliance

Michigan Income Tax: 4.25% Flat Rate

Michigan imposes a flat 4.25% individual income tax (MCL 206.51). The rate has been 4.25% since 2012 with one exception: a one-time reduction to 4.05% for the 2023 tax year only, triggered by a revenue mechanism in the 2015 law. The rate reverted to 4.25% for 2024 and remains at 4.25% for both 2025 and 2026. A common misconception is that the 4.05% rate is ongoing; it was a single-year event. HB 4170 in the 2025-2026 session would have permanently reduced the rate to 4.05%, but it was vetoed by Governor Whitmer. The Michigan EITC was increased from 6% to 30% of the federal EITC under PA 4 of 2023, a significant benefit for low-income workers. Employers withhold using MI-W4 exemptions. For all required new hire tax forms, see the tax forms for new employees.

Unemployment Insurance

Michigan UI is governed by the Michigan Employment Security Act (MCL 421.1 et seq.), administered by the Unemployment Insurance Agency (UIA). UI is 100% employer-funded; nothing is deducted from employee wages. A "qualified employer" is one that has filed all quarterly reports and has no unpaid balance of $25 or more. File quarterly via MiWAM (transitioning to the new MiUI system in 2026). Maximum benefit weeks increased from 20 to 26 and maximum weekly benefit increased from $362 to $446 effective April 2, 2025. The 2026 maximum weekly benefit rises to $530. Register at michigan.gov/uia or through the combined Form 518 registration.

24 Cities with Local Income Taxes

Michigan's most operationally complex payroll requirement is its 24-city local income tax system. This creates separate registration and withholding obligations for each city where your employees live or work.

How withholding works: if an employee lives in a taxing city, withhold the resident rate on all wages. If an employee works in a taxing city but lives elsewhere, withhold the nonresident rate only on wages earned while working in that city. If an employee works partially in a taxing city, only the portion attributable to work in that city is taxable at the nonresident rate. Detroit withholding is administered through the Michigan Department of Treasury at michigan.gov/citytax. Each of the other 23 cities administers its own withholding separately. Filing deadline: most cities April 30; Detroit April 15. Employers must register with each applicable city. Failing to register and withhold nonresident tax when employees work in a taxing city is among the most common Michigan payroll compliance failures.

Registration sequence for new Michigan businesses: (1) Federal EIN from IRS; (2) Michigan Form 518 via Michigan Treasury Online (covers state withholding plus UI); (3) Separate city tax registrations for each applicable city; (4) Workers' compensation insurance; (5) New hire reporting within 20 days; (6) LARA entity registration if not already formed.

Employee Privacy and Data Protection

Michigan's eavesdropping statute (MCL 750.539a through 539c) is often mischaracterized as an all-party consent law. The statute prohibits recording "the private discourse of others," but courts have consistently held that participants in a conversation may record it without the other party's consent. This participant exception, established in Sullivan v. Gray (117 Mich. App. 476, 1982) and confirmed in Fisher v. Perron (6th Cir. 2022), means employers may record conversations they participate in. Third-party eavesdropping on conversations you are not part of still requires all-party consent and is a felony (up to 2 years imprisonment and a $2,000 fine). The Michigan Supreme Court has not overturned the participant exception. Practical rule: you can record your own conversation; you cannot secretly record someone else's. Implement a clear recording policy in your handbook.

The Internet Privacy Protection Act (IPPA, PA 478 of 2012, MCL 37.271 through 37.278) applies to all employers regardless of size. Employers may not request or require employees or applicants to disclose social media usernames, passwords, or login information, or grant access to personal internet accounts. Exceptions apply to employer-owned devices and accounts, investigations of specific suspected violations, and viewing publicly available information. Penalty: misdemeanor, civil action for injunctive relief plus up to $1,000 damages plus attorney fees.

The Bullard-Plawecki Employee Right to Know Act (PA 397 of 1978, MCL 423.501 through 423.512) applies to employers with 4 or more employees. Employees may review their personnel records up to twice per calendar year on written request during normal business hours. Before disclosing files to third parties, employers must delete disciplinary records more than 4 years old. Employers must give written notice to the employee on or before the day of third-party disclosure. Prohibited: maintaining records of employees' political activities, associations, or non-employment communications without written consent. Remedies for willful violations: $200 plus costs plus attorney fees plus actual damages.

Data breach notification under the Identity Theft Protection Act (PA 452 of 2004, MCL 445.72(4)) requires notification "without unreasonable delay." There is no specific day count. The commonly cited 45-day deadline exists only in pending legislation (SB 360), not in current law. No AG notification is required under current Michigan law (proposed in pending bills). Consumer reporting agencies must be notified if 1,000 or more Michigan residents are affected. Penalties: civil fine up to $250 per violation, aggregate maximum $750,000 per breach. Michigan has no specific statute restricting use of credit reports in employment decisions; federal FCRA applies.

Termination and Separation

Final paychecks are due on the next regularly scheduled payday for the pay period in which separation occurred (MCL 408.475). There is no immediate payment requirement. Penalties escalate significantly for late payment: 10% annual penalty from the date of complaint notification until payment; repeat violations trigger punitive damages up to twice the amount owed plus attorney fees and possible criminal fine up to $1,000 and imprisonment up to 1 year. Fringe benefits such as accrued vacation are paid per the written contract or policy terms under MCL 408.474c. For a complete offboarding process, see the employee offboarding and the employee exit process.

Non-Competes: Enforceable with Reasonableness Review

Michigan non-compete agreements are governed by the Michigan Antitrust Reform Act (MARA, MCL 445.774a) and are enforceable when they protect reasonable competitive business interests and are reasonable in duration, geographical scope, and type of employment. Courts generally uphold durations of 2 to 3 years. Geographic scope must relate to where the employer actually does business. Michigan courts have blue pencil and reformation power, meaning they may narrow an overbroad non-compete rather than void it entirely. This is different from states like North Carolina where courts cannot rewrite a covenant. Adequate consideration is required: employment at the time of hiring satisfies this; continued employment alone may be sufficient for at-will employees. Agreements must have been entered into after March 29, 1985 to be covered by MARA. For offer letter templates with non-compete provisions, see the offer letter template.

Michigan has no state mini-COBRA statute. Employers with fewer than 20 employees are not covered by federal COBRA and have no state-mandated health continuation obligation. Employees of small employers should explore ACA Marketplace options or insurer conversion rights. Michigan has no state WARN Act; federal WARN (100 or more employees, 60-day notice) applies. For the FirstHR audience of 5 to 50 employees, federal WARN is unlikely to apply. For a comparison with states that have their own WARN Acts, see the New Jersey HR compliance guide.

Employee Handbook Requirements

Michigan does not require employers to maintain a written handbook. But the Toussaint doctrine makes at-will disclaimers critical, ESTA requires written sick leave policies and notices, and ELCRA exposure at 1 employee makes anti-discrimination policies essential. For a complete handbook guide, see the how to create an employee handbook. For a ready-to-use starting point, see the sample employee handbook.

The at-will disclaimer is the single most critical element for Michigan employers given the Toussaint doctrine. Ensure it is on the first page, uses clear unambiguous language, explicitly states the handbook does not create a contract, and is signed and dated by each employee. Obtain a fresh acknowledgment whenever the handbook is materially revised.

Detroit and Local City Requirements

Michigan's Dillon Rule does not prevent cities from levying local income taxes, but state law (MCL 123.1384) preempts local minimum wage and employment ordinances. No Michigan city has its own minimum wage above the state rate, and ESTA applies statewide with no city supplements. The employment law complexity in Michigan cities is primarily a payroll and tax compliance issue.

Detroit income tax: residents pay 2.40%; nonresidents working in Detroit pay 1.20% on wages attributable to work performed in Detroit; corporations pay 2.00%. Personal exemption is $600 per person. Administered by Michigan Department of Treasury at michigan.gov/citytax, not by the city itself. Non-residents who work partially in Detroit must complete Schedule N to apportion wages. Filing deadline is April 15 (not April 30 as in most other Michigan cities). For assistance: 517-636-5829. Detroit also has a ban-the-box ordinance for public employers and contractors, and city contractors face some salary history restrictions. Ann Arbor restricts salary history inquiries for city government hiring. For comparisons with other Midwestern state compliance environments, see the Ohio HR compliance guide and the Illinois HR compliance guide.

Required Workplace Postings

Michigan requires more state postings than most states, and several require annual updates when wage rates or benefit levels change. Download Michigan state posters free at michigan.gov/leo. The ESTA poster must be posted in English and Spanish, plus any language spoken by 10% or more of the workforce.

Two postings require January updates: the Minimum Wage and Overtime poster (updated for $13.73 effective January 1, 2026) and the Michigan Discrimination Notice (updated December 2023 to include LGBTQ+ protections, hair texture, and ethnic origin). The MIOSHA Form 300A injury summary must be posted February 1 through April 30 only, not year-round.

Michigan vs. Federal vs. California

Michigan's compliance profile is distinctive for several reasons. It covers more workers under anti-discrimination law than any other midcontinent state (1 employee). It now has one of the most comprehensive paid sick leave laws in the country covering all employers. Its unique height and weight protections have no equivalent in California or most other states. Local income taxes at 24 cities create payroll complexity uncommon outside Michigan and Ohio. For employers comparing Midwestern states, Ohio has a similarly complex municipal tax system but different anti-discrimination coverage. For comparison with the South and employer-friendly states, see the Georgia HR compliance guide.

Key Legislative Changes 2019-2026

The most operationally significant changes for small Michigan employers: ESTA now covers all employers including those with 1 to 10 employees (in full compliance since October 1, 2025); ELCRA expanded to LGBTQ+ workers effective February 13, 2024; minimum wage reached $13.73 in 2026 and heads to $15 in 2027; right-to-work repealed February 2024; and UI maximum benefit weeks expanded to 26. For a complete compliance checklist incorporating all Michigan requirements for new hires, see the compliance onboarding.

Frequently Asked Questions