Frequently Asked Questions

Employee Exemptions

  • "Eligible employee" means an individual engaged in service to an employer in the business of the employer and from whom an employer is required to withhold for federal income tax purposes. Eligible employee does not include any of the following:

    • An individual who is exempt from overtime requirements under section 13(a)(1) of the fair labor standards act, 29 USC 213(a)(1).
       
    • An individual who is not employed by a public agency, as that term is defined in section 3 of the fair labor standards act, 29 USC 203, and who is covered by a collective bargaining agreement that is in effect.
       
    • An individual employed by the United States government, another state, or a political subdivision of another state.
       
    • An individual employed by an air carrier as a flight deck or cabin crew member that is subject to title II of the railway labor act, 45 USC 151 to 188.
       
    • An employee as described in section 201 of the railway labor act, 45 USC 181.
       
    • An employee as defined in section 1 of the railroad unemployment insurance act, 45 USC 351.
       
    • An individual whose primary work location is not in this state.
       
    • An individual whose minimum hourly wage rate is determined under section 4b of the improved workforce opportunity wage act, 2018 PA 337, MCL 408.934b.
       
    • An individual described in section 29(1)(l) of the Michigan employment security act, 1936 (Ex Sess) PA 1, MCL 421.29.
       
    • An individual employed by an employer for 25 weeks or fewer in a calendar year for a job scheduled for 25 weeks or fewer.
       
    • A variable hour employee as defined in 26 CFR 54.4980H-1.
       
    • An individual who worked, on average, fewer than 25 hours per week during the immediately preceding calendar year.