A minimum wage and overtime wage is set by the Fair Labor Standard Act for all people who work in the United States. Additionally, the Michigan Workforce Opportunity Wage Act sets the minimum wage for people who work in Michigan. 

Despite these two entities setting standard wages, however, not all employees fall under the WOWA or FLSA. 

Which employees are not covered? 

According to the Michigan Legal Help website, there are certain groups of employees that are exempt from the FLSA and WOWA wage and overtime rates. Here are some examples of employees who are not covered by the FLSA. 

  • Commissioned salespeople 
  • Computer professionals 
  • Some farmworkers 
  • Employees who make $35,308 per year and work as executive, professional, administrative, and outside sales employees 

Similar exemptions from the WOWA exist for administrative, executive, or professional employees who make at least $13,000 annually. 

What about tipped employees? 

When it comes to employees that receive tips, things work a little bit differently. You may receive 38% of the minimum hourly wage rate, so long as: 

  • Your employer informs you of the tip provisions 
  • You receive and report your tips 
  • The tips received, plus the wages paid, equals or exceeds the minimum hourly wage. If not, your employer must pay the difference.  

Your employer must adhere to the state and federal guidelines when calculating and paying your wages. Additionally, employers are responsible for paying you for all the time that you work for. If you work more than 40 hours in seven days, overtime rates should apply unless you are an exempt employee.