Can a Michigan employer legally pay every worker a salary, to avoid paying overtime?
In Michigan, federal law and not state law covers this matter. And according to the Fair Labor Standards Act (FLSA), the answer is no. While it’s perfectly legal (and sometimes convenient for payroll processing purposes) to put all employees on a salary, most of them will still have the legal right to receive overtime. The FLSA, incidentally, requires that workers are entitled to 1.5 times their usual hourly rate for every hour over 40. To calculate the rate for salaried workers, take the weekly salary, divide it by 40, and multiply the results by 1.5. That is the amount to be paid for every hour over 40. If an employee receives a salary of less than $455 a week, he or she is entitled to overtime. There are only a few exceptions. They are teachers, outside sales persons, and those employees who practice medicine or law. Some employees who earn salaries of more than $455 a week are still entitled to overtime. They include firefighters, police officers, detectives, and emergency responde
