Michigan Takes Action to Raise Overtime Pay Threshold
On October 24, 2019, Governor Gretchen Whitmer directed the Michigan Department of Labor and Economic Opportunity to begin the rulemaking process to potentially raise the salary level for overtime exempt classifications in Michigan. The Governor’s press release did not indicate what salary level should be proposed in the rulemaking.
We recently reported here that, effective January 1, 2020, the federal minimum salary threshold for overtime exemptions will increase from $455 per week ($23,660 per year) to $684 per week ($35,568 per year). The Governor seeks to have Michigan join other states like California and New York, which impose a higher salary threshold than the federal level. Given that Michigan’s salary rule is set forth in legislation, the proposed change via rulemaking is certain to face legal and political hurdles.
The rulemaking process is expected to take six to twelve months to complete. We will keep you updated as the rulemaking process advances.