Michigan employers would no longer be required to pay overtime to salaried professional employees beginning on October 1, under an agreement reached between Governor Granholm and state lawmakers.
The announcement was welcome news to job providers concerned about how to pay increased payroll costs.
The state’s minimum wage was to be raised in increments beginning this year, under legislation passed in late spring. Because Michigan’s minimum wage will soon surpass the federal limit, the unintended effect was to circumvent federal minimum wage exemptions. One such exemption allowed Michigan employers to avoid paying overtime to salaried professional employees and certain motor carrier employees.
MITA joined the Michigan Chamber of Commerce and a large coalition of other state employers to get a quick fix adopted in time to avoid the unexpected hit to employers. House Bill 6213 was approved by the Legislature on August 30 and the governor is expected to sign the bill shortly.
If you have any questions please contact Mike Nystrom, Vice President of Government and Public Relations at mikenystrom@mi-ita.com ; or Keith Ledbetter, Director of Legislative Affairs at keithledbetter@mi-ita.com ; or by calling the MITA office at (517) 347-8336.
