Michigan Wage and Hour Division Minimum Wage Information
The Michigan Minimum Wage Law governs the minimum wage for township employees.

U.S. Department of Labor Fair Labor Standards Act Information
Information to help determine which officials and employees are subject to the minimum wage. Note that the FLSA also governs overtime and compensatory time for township employees.

On October 1, 2006, the Michigan minimum hourly wage increased from $5.15 to $6.95. Beginning July 1, 2007, the Michigan minimum hourly wage will increase to $7.15. And beginning July 1, 2008, it will increase to $7.40.

Township employees who were subject to the minimum wage (nonexempt employees) under the federal Fair Labor Standards Act (FLSA), 29 USC 201, et seq., prior to October 1 are now subject to the Michigan minimum wage provisions of the Michigan Minimum Wage Law, Public Act 154 of 1964, MCL 408.381, et seq. Township employees will remain, however, subject to the federal overtime and compensatory time provisions of the FLSA to the same extent that they were prior to October 1, 2006.

The switch to the state minimum wage rate occurred because PA 81 of 2006, which took effect March 28, raised the Michigan minimum wage above the federal minimum wage for the first time, effective October 1, 2006. Township employees were not previously subject to the state minimum wage because they were subject to the FLSA. But the Michigan Minimum Wage Law contains a provision that if the state minimum wage is higher than the federal minimum wage, then employers who are subject to the federal law, including political subdivisions of the state, become subject to the state law. (MCL 408.394)

Political and administrative concerns about the impact of differences in the federal and state overtime and compensatory time provisions on both private and public sector employers were addressed by the Legislature and the Granholm administration in multiple versions of draft legislation starting in mid-June and ending with the approval of House Bill 6213 on August 30. On September 22, Gov. Granholm signed Public Act 373 of 2006, which exempts employers who are currently subject to the FLSA from Section 4a of the Minimum Wage Law (MCL 408.384a). As a result, public employers such as townships are now subject to the minimum wage provisions of the Michigan law, but remain subject to the FLSA overtime and compensatory time provisions, which have not changed.

Under MCL 480.384, the Michigan minimum wage increased on October 1 from the current federal rate of $5.15 to $6.95. Two additional increases will follow, raising the Michigan minimum wage to $7.15, beginning July 1, 2007, and to $7.40, beginning July 1, 2008. These increases apply to any township employee who was subject to the FLSA’s minimum wage requirements. Township employees who were exempt from the FLSA’s minimum wage provisions will continue to be exempt under the Michigan provisions.

Other federal and Michigan laws—and individual collective bargaining agreements within a township—may also impact township wage, hour, overtime, and compensatory time policies, particularly for police, fire, and emergency medical personnel.

Because both the state and federal laws are complicated and the impact on individual townships will vary based on specific circumstances, MTA strongly recommends that township boards consult with local human resources personnel or legal counsel for specific guidance on wage and hour issues.