Michigan Wage law could give overtime to thousands

The Detriot Free Press reports:

Michigan's new higher minimum wage law could mean more money for tens of thousands of workers -- many of whom already are well paid -- because they'll be eligible for overtime pay for the first time.

It's a hidden twist in the wage law signed last month that could cause payroll headaches for employers.

Lawmakers may move to plug the overtime loophole before the minimum wage rises on Oct. 1, from $5.15 an hour to $6.95 an hour.

The quirk applies to 12 classes of workers -- including car salespeople, mechanics, truck drivers and nannies -- who are exempt from overtime eligibility under federal law as long as Michigan's minimum wage is the same or less than the federal minimum wage.

Until Oct. 1, the state and federal minimum wage rates are the same -- $5.15 an hour.

But when Michigan's minimum pay exceeds the federal rate in October, exemptions for overtime pay -- time and a half when employees work more than 40 hours a week -- would expire.

Robert Boonin, an Ann Arbor-area attorney who specializes in labor law, said the change "could have devastating effects on employers who have to pay highly compensated employees overtime for the first time."

Michigan is now even worse place to do business.Would you want to expand or open up a new business in Michigan? You'll want to read the whole article.