The complete guide
Michigan overtime calculator: how it works
Overtime pays 1.5× your rate, but not 1.5× after tax. Enter your rate and overtime hours to see the true value of those extra shifts in Michigan.
Michigan law requires time-and-a-half for most hourly workers after 40 hours in a workweek. But the money you see is less than 1.5× your hourly rate, every overtime dollar is still subject to federal tax, FICA, the Michigan 4.25%, and any city tax. This calculator shows you the real per-hour and per-week value of your overtime.
Michigan overtime law (the basics)
Under both federal FLSA rules and Michigan’s overtime rules, non-exempt employees must be paid 1.5 times their regular rate for hours worked beyond 40 in a single workweek. Michigan’s rules track the federal framework for most workers; exemptions apply to salaried executive, administrative, and professional roles that meet the duties test. The calculator’s 1.5× multiplier matches the statutory default.
The OBBBA twist for Michigan salaried workers
Michigan has its own overtime wrinkle: the Occupational Benefit Board Back Pay Act (OBBBA) requires certain employers, broadly, those whose employees qualify for retirement or health benefits under the act, to pay 1.5× overtime for more than 40 hours in a week or 8 hours in a day, whichever is more generous. It’s a legacy law that still trips up employers. If you’re a covered salaried worker, your overtime can exceed the federal 1.5× baseline.
Why 1.5× isn’t 1.5× in your pocket
Take a $26/hour worker in a non-taxing city doing 5 hours of overtime. Gross overtime is $195 ($39/hour). Federal takes a share, more if the extra hours push you into a higher bracket, plus 7.65% FICA, 4.25% state, and city tax. Net, those 5 hours might add $130–140 to the check rather than $195. The calculator’s weekly figure includes your regular and OT hours so you can compare scenarios directly.
Multiple jobs and the 40-hour rule
Overtime is measured per employer, not across all your jobs. If you work 30 hours for one employer and 30 for another, neither owes overtime. The calculator models a single job, enter your combined OT hours for that job only.
Tipped overtime
For tipped workers, overtime is based on the full regular rate of pay (including tip credit considerations), not the tipped minimum alone. If you earn tips, treat your average hourly rate, base plus tips, as your rate in the calculator for a realistic overtime figure.