A Michigan employment contract helps protect both the employer and the employee and outlines what is expected of both parties, such as the job responsibilities of the employee, the period of employment, and the compensation they will receive from the employer.
For a contract to be valid in Michigan, it must meet several essential elements: a proper subject matter, competent parties, mutual assent, legal consideration, and mutuality of obligation [1] .
- Laws: Michigan Compiled Laws Chapter 408.
- Definition of Employee: § 418.161: “A person in the service of the state, a county, city, township, village, or school district, under any appointment, or contract of hire, express or implied, oral or written. A person employed by a contractor who has contracted with a county, city, township, village, school district, or the state, through its representatives shall not be considered an employee of the state, county, city, township, village, or school district that made the contract, if the contractor is subject to this act.”
By Type
Independent Contractor Agreement
Outlines the scope and terms of the relationship between a contractor and their client.
Subcontractor Agreement
Defines the collaboration between a subcontractor and a general contractor.
Employee Non-Compete Agreement
Protects company trade secrets and other confidential information.
Employee Non-Disclosure Agreement
Safeguards proprietary information, preventing unauthorized exposure.
Hiring in Michigan
Before you write your Michigan employment contract, ensure you know Michigan’s labor requirements and regulations.
At-Will Employment
Michigan is an at-will employment state. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied-Contract: Yes
- Good-Faith Exception: No
Minimum Wage ($/hr)
Basic Minimum Rate (per hour): $10.10 [2] .
Premium Pay After Designated Hours: Weekly – 40.
In Michigan, the minimum wage will increase annually on a set schedule until 2030 as long as the unemployment rate in the preceding year does not exceed 8.5%.
Any employees 16-17 years of age can be paid 85% of the minimum wage.
Child Labor
For minors under 18, employment certificates are required in Michigan [3] . However, there are some exceptions when an employment certificate is not required:
- A minor of 16 years or older who has completed the requirements for high school or has obtained a high school equivalency certificate and provided a copy to their employer.
- A minor of 17 years old who has passed the general education development test and provided a copy to their employer.
Employment certificates can be obtained from the Michigan Department of Education.
Age certification is mandatory in Michigan for minors under 18 but is included as part of an employment certificate.
Payday
Payday requirements in Michigan vary by occupation. Generally, employees should be paid on, or before, the first day of each calendar month for the wages earned by the employee during the first 15 days of the previous month. Employees should also be paid on an established, regularly recurring payday [4] .
Meal and Rest Breaks
Michigan does not require minimum paid rest periods or minimum meal periods.
Recordkeeping Requirements
Michigan employers are required to keep employee records for at least three years [5] on:
- Wages, hours, payroll
- Paid sick leave
- Child labor
- Safety & Health
- Unemployment insurance (6 years)
Sample
Below, you can download a Michigan employment contract template in PDF or Word format:
