Michigan Labour Law Compliance with NextGen Workforce

Why Michigan compliance is different

Michigan employers must navigate state and federal rules at once: minimum wage and overtime under the Improved Workforce Opportunity Wage Act (IWOWA), paid sick time (PMLA and upcoming updates), youth break requirements, and strict payroll recordkeeping. These rules evolve, so your system must, too.

NextGen Workforce is built to encode Michigan rules into everyday workflows so managers don’t need to be statute experts to stay compliant.

Working hours & overtime (FLSA + Michigan IWOWA)

What the Law Requires

Most employees must be paid time-and-a-half for hours over 40 in a workweek (FLSA and Michigan IWOWA alignment).

How NextGen helps

Tracks daily and weekly hours in real time and auto-flags overtime at 40+ hours.
Applies overtime rules to payroll exports automatically.
A committed notification system to inform the manager when an employee is nearing overtime and the set limit.

Paid sick time (PMLA today; new earned sick time rules emerging)

What the Law Requires

Under Michigan’s Paid Medical Leave Act (PMLA), eligible employees accrue 1 hour of paid medical leave per 35 hours worked, with annual caps; employers may limit accrual to at least 40 hours per benefit year.
Michigan has implemented expanded earned sick time since Feb 21, 2025 (often referred to as MESTA drafts/updates), with faster accrual (e.g., 1 hour per 30 hours) and broader reasons for use. Your policy may need updating.

How NextGen helps

Configurable accrual engines: set 1:35 or 1:30, caps, carryover, waiting periods, front-loading.
Manager workflows for request/approve/deny with balances visible to employees.
Audit trails for every adjustment; policy templates you can switch when law changes take effect.

Result: You stay aligned with current state guidance today and can pivot quickly when new rules take effect.

Minimum wage & tipped wage

What the Law Requires

Michigan minimum wage is governed by IWOWA and is subject to scheduled changes and court-driven updates; employers must follow the higher of state or federal minimums.

How NextGen helps

Rate tables and effective-date rules ensure the right base rates land on the right pay periods.
Supports tipped differentials and separate tracking of tips for payroll files.

Youth employment (breaks for minors)

What the Law Requires

Under Michigan’s Youth Employment Standards Act, minors (under 18) must receive a 30-minute uninterrupted break after no more than 5 continuous hours; time records should reflect the break.

How NextGen helps

Scheduling guardrails to insert required breaks for minors.
Timecard validations that flag missing 30-minute breaks.
Reports isolating minor schedules for audit readiness.

Recordkeeping & pay statements

What the Law Requires

Employers must maintain detailed payroll and time records (name, address, DOB, occupation, rate of pay, daily start/end times, total hours, wages, deductions, fringe benefits) and retain records for at least three years. Pay statements must show hours, gross wages, deductions, and (if applicable) paid medical leave info.

How NextGen helps

Tamper-evident audit logs of every punch, edit, approval, and export.
Daily start/end times stored to the minute and included on pay-period summaries.
Statement-ready data (hours, gross, deductions, PMLA accrual/usage) available for payroll and employee self-service.

Scheduling, coverage & controls

Even though Michigan does not impose universal predictive scheduling, employers still face coverage and cost control pressures.

How NextGen helps

Build weekly/monthly schedules by location, department, or role.
Post open shifts and allow shift swaps with manager approvals.
Overtime avoidance rules and alerts to keep weekly totals within budget before they become liabilities.

Learn more about the Scheduling Tool

Time capture that fits your worksites

Clock-in options

Mobile app (GPS-tagged punches if enabled).
On-site kiosks for shared terminals.
Biometric clocks where needed.
Web for office staff with role-based access.

Controls

Geo-fencing (allowing punches only inside approved areas) and auto clock-out on exit, with real-time violation alerts to managers, are ideal for dispersed field crews.

Learn More about Attendance Tracking

Reports & audit trails for inspections

Pre-built overtime, exceptions, absence, and accrual reports.
Timecard history: who changed what, when, and why—down to line-item edits.
Export formats aligned to your payroll provider; retain archives for the 3-year statutory window.

Payroll & HR integrations

Send regular, OT, PTO/sick hours directly to payroll.
Sync people, departments, and approvals with HR systems (e.g., BambooHR).
Effective-dated pay rates, cost centers, and project codes ride along to payroll—clean, reconcilable files every time.