Labor and Economic Opportunity
Today income growth has not been widely shared. Many Michiganders face unpaid overtime that crowds out time that could otherwise be spent on paid work or family responsibilities.
Time worked should be time paid, yet the current overtime rule only covers 5% of Michiganders, compared to 63% in 1975.
That’s why Governor Whitmer and the Department of Labor and Economic Opportunity submitted a request for rulemaking to raise the threshold for Michigan workers who are salaried and eligible for overtime compensation, expanding overtime protections to more than 200,000 hardworking Michiganders.
The new overtime rule will ensure that Michiganders are paid fairly for the hours they work and will begin closing gaps in pay equity.
Eligible employees that receive overtime protections are not required to work overtime and employers may cap hours at 40 hours. Many eligible employees that will receive new protections likely are not working overtime today.
The rule covers middle managers, administrative staff and skilled professionals like graphic artists or programmers, who stand to earn more than the Trump administration’s income threshold (about $35,000) and less than the Michigan threshold. There are 4.4M workers in the State of Michigan. Of these 4.4M workers, 2.9M (about two-thirds) are hourly workers and are already entitled to overtime pay. 1.5M workers are salaried.
LEO is committed to an inclusive, data-driven rulemaking process that results in a better deal for Michigan workers and their families.