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Do 'tipped' workers receive overtime pay in Michigan?

It seems like nowadays, those who are fortunate enough to have full-time jobs are putting in longer hours than ever. As a result, many in Michigan are likely to be concerned about wage and hour laws and whether or not they are receiving the correct amount of overtime pay. Learning about employment law is often a complicated endeavor, though one that can be made much easier with an employment law attorney's help.

One common myth about overtime in Michigan -- and in many other states -- is that workers who routinely receive tips, such as waiters or hair stylists, are not entitled to overtime pay if they put in more hours per week than overtime standards dictate. This is actually untrue; there are special overtime rules which apply to tipped employees, and these workers are indeed entitled to overtime pay.

As of January 1 of this year, the regular minimum wage for non-tipped employees in Michigan is $8.50 per hour. For tipped employees, the minimum wage is $3.23; this is so long as the employee's reported tips her hour average out to a minimum of $5.27. The minimum wage for tipped employees will go up to $3.38 in 2017 and $3.52 the following year.

Tipped employees who work overtime are entitled, just like their non-tipped counterparts, to overtime pay. Specifically, tipped workers in Michigan who put in overtime are entitled to be paid at one-and-a-half times their regularly hourly rate, or $7.48 per hour. Again, this is so long as their average tips per hour is at least $5.27. Next year, the hourly rate for tipped workers' overtime will rise to $7.83 per hour and to $8.14 the year after that. An employment law and workplace discrimination attorney can help both tipped and non-tipped workers alike understand the overtime pay to which they are entitled.

Source: MIOSHA, "Tipped Employees," accessed May 2, 2016

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