How to Hire a New Employee in Michigan (2026)
Reviewed by DocDraft Legal Team · Michigan · Last updated 2026-05-18
Bringing on an employee in Michigan starts with the state minimum wage and the federal new-hire reporting clock. In Michigan, $13.73 per hour effective January 1, 2026; scheduled to increase to $15.00 effective January 1, 2027; tipped wage $5.49 (40% of minimum); youth (16-17) $11.67; training wage $4.25 (first 90 days for new hires under 20). The statutory anchor is Mich. Comp. Laws section 408.934. The state new-hire portal accepts reports due within 20 calendar days after the date of hire or re-hire. This guide explains the Michigan-specific rules on UI registration, workers' compensation thresholds, E-Verify, mandatory posters, and at-will employment.
Key Considerations
Before the first paycheck, a Michigan employer has to know the wage floor that applies. $13.73 per hour effective January 1, 2026; scheduled to increase to $15.00 effective January 1, 2027; tipped wage $5.49 (40% of minimum); youth (16-17) $11.67; training wage $4.25 (first 90 days for new hires under 20) That floor sits at Mich. Comp. Laws section 408.934 (Improved Workforce Opportunity Wage Act, as restored by Mothering Justice v. Attorney General, 2024).
The risk-allocation rules in a Michigan hire run on three statutes. On workers' compensation, All private employers, other than agricultural employers, who regularly employ 3 or more employees at 1 time. On work-authorization verification, No state-level statute. Governed by common law / municipal ordinance / case law as applicable. On termination posture, An employer shall not discharge, threaten, or otherwise discriminate against an employee regarding the employee's compensation, terms, conditions, location, or privileges of employment because the employee, or a person acting on behalf of the employee, reports or is about to report, verbally or in writing, a violation or a suspected violation of a law or regulation or rule promulgated pursuant to law of this state, a political subdivision of this state, or the United States to a public body, unless the employee knows that the report is false, or because an employee is requested by a public body to participate in an investigation, hearing, or inquiry held by that public body, or a court action.
New-hire reporting is the federally-mandated first administrative step. Michigan requires the report Within 20 calendar days after the date of hire or re-hire. On the unemployment side, the employer must also register for state UI tax via the state agency
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Relevant Documents
For a Michigan hire the document touchpoints are federal Form I-9, federal Form W-4 (and the Michigan state-tax addendum where the state operates a separate withholding regime), the Michigan new-hire report filed with the state agency (Within 20 calendar days after the date of hire or re-hire.), and the workers' compensation paperwork tied to the Michigan threshold: All private employers, other than agricultural employers, who regularly employ 3 or more employees at 1 time. Minimum-wage authority: Mich. Comp. Laws section 408.934 (Improved Workforce Opportunity Wage Act, as restored by Mothering Justice v. Attorney General, 2024).
Employee Handbook
A comprehensive document outlining company policies, procedures, work rules, benefits, and expectations. Provides important information to new employees and serves as a reference for all staff.
Employment Application Form
A standardized form for collecting information from job applicants including work history, education, skills, and references. This helps employers make informed hiring decisions and serves as documentation of the hiring process.
Employment Contract
A comprehensive legal agreement between employer and employee detailing all terms and conditions of employment including duties, compensation, benefits, termination procedures, and confidentiality requirements.
Employment Offer Letter
A formal document outlining the terms of employment including position, salary, benefits, start date, and other conditions. This establishes clear expectations and serves as evidence of the employment agreement.
Non-Compete Agreement
A contract that restricts an employee from working for competitors or starting a competing business for a specified period after employment ends. Enforceability varies significantly by state.
Non-Disclosure Agreement
Protects your confidential information, trade secrets, and intellectual property that you may need to share with the manufacturer during the course of your relationship. This should be signed before detailed discussions begin.
Relevant Laws
Michigan's Elliott-Larsen Civil Rights Act
This law prohibits discrimination in employment based on religion, race, color, national origin, age, sex, height, weight, familial status, or marital status. When hiring, employers must ensure their practices don't discriminate against protected classes.
Michigan's Persons with Disabilities Civil Rights Act
Employers must provide reasonable accommodations for qualified individuals with disabilities during the hiring process and employment, unless doing so would cause undue hardship.
Michigan's Social Security Number Privacy Act
Employers must have a privacy policy for handling Social Security numbers and limit their collection and use during the hiring process to protect applicant privacy.
Michigan's Internet Privacy Protection Act
Employers cannot request applicants or employees to grant access to, allow observation of, or disclose information that allows access to personal internet accounts as a condition of employment.
Michigan's Minimum Wage Law
Employers must pay at least the state minimum wage ($10.33/hour as of 2023) and comply with overtime requirements. This is relevant when establishing compensation for new hires.
Michigan's New Hire Reporting Law
Employers must report all newly hired employees to the Michigan New Hire Operations Center within 20 days of hire to assist with child support enforcement.
Federal I-9 Employment Eligibility Verification
Michigan employers must verify the identity and employment authorization of each person hired by completing Form I-9 within 3 business days of the date of hire.
Michigan's Right to Work Laws
Michigan repealed its Right to Work laws effective March 2023. Employers should be aware that union security agreements may now be enforceable, potentially affecting new hires.
Regional Variances
Major Metropolitan Areas
Detroit has additional local ordinances affecting employers, including a 'Ban the Box' ordinance that prohibits employers from asking about criminal history on initial job applications. The city also has specific wage theft prevention measures that require additional documentation for certain industries.
Ann Arbor has more stringent anti-discrimination protections than state law, including explicit protections based on gender identity, sexual orientation, and source of income. Employers must also comply with the city's living wage ordinance for certain contracts.
Western Michigan
Grand Rapids enforces a human rights ordinance that provides broader protections against employment discrimination than state law, including protections for gender identity and expression. The city also has specific requirements for certain industries regarding paid time off.
Kalamazoo has a non-discrimination ordinance that extends protections to LGBTQ+ individuals in employment. The city also has specific requirements for employee scheduling in certain retail and service industries.
Northern Michigan
Traverse City has seasonal employment considerations due to its tourism-based economy, with specific regulations regarding temporary and seasonal workers. The city also has local ordinances addressing employee housing that may affect employers who provide housing assistance.
Suggested Compliance Checklist
Transmit the PRWORA new-hire record
On hire days after startingThe cadence rule is Within 20 calendar days after the date of hire or re-hire.
Activate an employer UI tax account in Michigan
Before first payroll days after startingRegister the new employer with the relevant state unemployment-insurance tax agency before first payroll.
Gather withholding documentation at hire: federal Form W-4 plus the Michigan state withholding form
Before first hire days after startingMichigan's state-tax addendum applies wherever the state operates a separate withholding regime.
File Form I-9 for the new hire on day one of work (employee section) and within 3 business days for the employer section
On hire days after startingRetention rule: 3 years after hire or 1 year after termination, whichever is later.
Verify whether the Michigan workers'-compensation statute applies to this headcount
On hire days after startingAll private employers, other than agricultural employers, who regularly employ 3 or more employees at 1 time.
Determine whether E-Verify enrollment is required or optional in Michigan
Before hire days after startingNo state-level statute. Governed by common law / municipal ordinance / case law as applicable.
Set the at-will employment representation in writing
Before first hire days after startingMichigan posture: An employer shall not discharge, threaten, or otherwise discriminate against an employee regarding the employee's compensation, terms, conditions, location, or privileges of employment because the employee, or a person acting on behalf of the employee, reports or is about to report, verbally or in writing, a violation or a suspected violation of a law or regulation or rule promulgated pursuant to law of this state, a political subdivision of this state, or the United States to a public body, unless the employee knows that the report is false, or because an employee is requested by a public body to participate in an investigation, hearing, or inquiry held by that public body, or a court action.
Post the required workplace notices
Before hire days after startingMichigan requires: Required posters include: Michigan Safety and Health Protection On The Job, Annual Summary of Injuries and Illnesses (Log 300A), Right to Know (CET 2105), New or Revised SDS Poster (CET 2106), Improved Workforce Opportunity Wage Act, Michigan Law Prohibits Discrimination, and Michigan Employment Security Act Notice to Employees.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Transmit the PRWORA new-hire record | The cadence rule is Within 20 calendar days after the date of hire or re-hire. | - | On hire |
| Activate an employer UI tax account in Michigan | Register the new employer with the relevant state unemployment-insurance tax agency before first payroll. | - | Before first payroll |
| Gather withholding documentation at hire: federal Form W-4 plus the Michigan state withholding form | Michigan's state-tax addendum applies wherever the state operates a separate withholding regime. | - | Before first hire |
| File Form I-9 for the new hire on day one of work (employee section) and within 3 business days for the employer section | Retention rule: 3 years after hire or 1 year after termination, whichever is later. | - | On hire |
| Verify whether the Michigan workers'-compensation statute applies to this headcount | All private employers, other than agricultural employers, who regularly employ 3 or more employees at 1 time. | - | On hire |
| Determine whether E-Verify enrollment is required or optional in Michigan | No state-level statute. Governed by common law / municipal ordinance / case law as applicable. | - | Before hire |
| Set the at-will employment representation in writing | Michigan posture: An employer shall not discharge, threaten, or otherwise discriminate against an employee regarding the employee's compensation, terms, conditions, location, or privileges of employment because the employee, or a person acting on behalf of the employee, reports or is about to report, verbally or in writing, a violation or a suspected violation of a law or regulation or rule promulgated pursuant to law of this state, a political subdivision of this state, or the United States to a public body, unless the employee knows that the report is false, or because an employee is requested by a public body to participate in an investigation, hearing, or inquiry held by that public body, or a court action. | employment-offer-letter | Before first hire |
| Post the required workplace notices | Michigan requires: Required posters include: Michigan Safety and Health Protection On The Job, Annual Summary of Injuries and Illnesses (Log 300A), Right to Know (CET 2105), New or Revised SDS Poster (CET 2106), Improved Workforce Opportunity Wage Act, Michigan Law Prohibits Discrimination, and Michigan Employment Security Act Notice to Employees. | - | Before hire |
Frequently Asked Questions
Michigan requires the new-hire report to be filed Within 20 calendar days after the date of hire or re-hire. The federal anchor for the report itself is the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996.
$13.73 per hour effective January 1, 2026; scheduled to increase to $15.00 effective January 1, 2027; tipped wage $5.49 (40% of minimum); youth (16-17) $11.67; training wage $4.25 (first 90 days for new hires under 20) The statutory anchor is Mich. Comp. Laws section 408.934 (Improved Workforce Opportunity Wage Act, as restored by Mothering Justice v. Attorney General, 2024).
In Michigan, the E-Verify posture for private employers is: No state-level statute. Governed by common law / municipal ordinance / case law as applicable. Federal contractors with a FAR E-Verify clause must still use E-Verify regardless of state law.
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