By Marc F. Herron For some, starting a small business is a way to bridge the gap between employment opportunities. For others, it is the fulfillment of a dream. Regardless of one’s motivation, the Minimum Wage Law applies equally.
As Michigan employers, small business owners must be acquainted with the applicable wage law. In Michigan, that would be the Minimum Wage Law of 1964, MCL 408.381 et. seq., which requires all employers to pay a minimum wage. As of July 1, 2008, the lowest hourly rate for employees is $7.40. However, an employer may pay a training wage of $4.25 for the first 90 days to employees who are under 20 years old. Pursuant to the law, an employer cannot displace an employee to hire someone at the training wage. As for overtime, employers must pay one and a half times the regular pay rate for an employee in workweeks that exceed 40 hours.