Michigan HR Consulting & Employment Law for Small Businesses

Michigan has a moderate employment law environment with a minimum wage above federal, mandatory paid medical leave, and a broad anti-discrimination statute that covers more protected classes than federal law.

Michigan employers must navigate the Michigan Paid Medical Leave Act (up to 40 hours of paid leave/year for employers with 50+ employees), the Elliott-Larsen Civil Rights Act (broader than Title VII), and minimum wage requirements that are rising toward a higher level. Michigan courts enforce non-competes with a reasonableness test.

Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.

Key Michigan Employment Laws

Michigan Paid Medical Leave Act

Michigan employers with 50 or more employees must provide eligible employees up to 40 hours of paid medical leave per year. Leave accrues at 1 hour per 35 hours worked. Employers may front-load the full 40 hours. Exempt employees are entitled to the same leave amount as what their salary covers for the workweek.

Elliott-Larsen Civil Rights Act

Michigan's ELCRA is broader than federal anti-discrimination law, applying to employers of any size and covering additional protected categories. Recent state supreme court rulings have extended ELCRA's protections to include sexual orientation and gender identity.

Michigan Non-Compete Enforceability

Michigan courts enforce non-compete agreements that are reasonable in scope, geography, and duration, and that protect a legitimate business interest. Courts apply a 'rule of reason' analysis and may modify overly broad agreements. Agreements exceeding 2-3 years are increasingly difficult to enforce.

Michigan Workers' Compensation

Michigan employers with 3 or more regular employees, or any employer who regularly employs 1 employee for 35+ hours per week, must carry workers' compensation. Coverage includes medical benefits, wage replacement, and rehabilitation services for work-related injuries.

Compliance Thresholds for Michigan Employers

1+ Employees: employees

  • Michigan minimum wage applies (above federal)
  • Elliott-Larsen Civil Rights Act anti-discrimination protections (at 1+ employee)
  • At-will employment broadly recognized

50+ Employees: employees

  • Michigan Paid Medical Leave Act: up to 40 hours/year paid sick leave
  • Federal FMLA applies (12 weeks unpaid)
  • ACA employer mandate

Common Questions About Michigan Employment Law

Does Michigan require paid sick leave?

Yes, for employers with 50 or more employees. The Michigan Paid Medical Leave Act requires up to 40 hours of paid leave per year for qualifying medical purposes. Smaller employers are not currently required to provide paid sick leave under state law.

What is the Michigan minimum wage?

Michigan's minimum wage is above the federal rate and has been subject to legislative and ballot initiative adjustments. The rate for tipped employees is lower. Check the Michigan Department of Labor and Economic Opportunity for current rates.

What does the Elliott-Larsen Civil Rights Act cover?

ELCRA prohibits discrimination based on religion, race, color, national origin, age, sex, height, weight, and marital status. Michigan's Supreme Court ruled in 2023 that ELCRA also protects sexual orientation and gender identity. The Act applies to employers of any size, unlike federal Title VII's 15-employee threshold.

Are non-competes enforceable in Michigan?

Yes, with a reasonableness test. Courts look at duration (up to 2 years is typically viewed as reasonable), geographic scope, and the employer's legitimate business interest. Michigan courts may modify overly broad agreements rather than voiding them entirely.

Is Michigan an at-will employment state?

Yes. Michigan broadly recognizes at-will employment. However, the Elliott-Larsen Civil Rights Act and its expanded scope mean any termination decision should be documented to demonstrate the decision was not motivated by a protected characteristic.

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