What benefits can servers get in Michigan?
MichiganVerified September 23, 2026
The short answer
Earned sick time at every employer, and a 30% state EITC. Since February 21, 2025, Michigan workers earn 1 hour of paid sick time per 30 worked, with up to 72 hours usable a year at employers with more than 10 workers and 40 at smaller ones. The Michigan EITC is 30% of your federal credit, up to $2,414 for 2025. Healthy Michigan Plan covers adults to 133% of poverty.
The rule in Michigan
| Earned sick time | 1 hour per 30 worked at every employer with one or more employees. Up to 72 paid hours a year usable at employers with more than 10 employees; up to 40 at small businesses, which started accruing October 1, 2025. |
|---|---|
| Carryover and waiting period | Unused hours carry over (up to 40 at small businesses, 72 at others). A new hire can be made to wait until day 120 to use them. |
| Sick pay rate | The greater of your normal hourly or base wage or the Michigan minimum wage. Tips and gratuities don’t have to be included. |
| Michigan EITC for Working Families | 30% of your federal EITC, up to $2,414 for tax year 2025. You need the federal credit, and you must file an MI-1040 even if you owe no tax. |
| Healthy Michigan Plan | Medicaid expansion for residents 19 to 64 with income at or below 133% of the poverty level. Work requirements start January 1, 2027. Apply at MI Bridges. |
| Marketplace | Michigan uses the federally run marketplace at HealthCare.gov. |
“Earned sick time must be paid at a pay rate equal to the greater of either (i) an employee's normal hourly wage or base wage, or (ii) the Michigan minimum wage rate then in effect under MCL 408.934 as amended.” (Michigan LEO: Earned sick time FAQs)
What’s different in Michigan
Michigan’s sick pay rule matters for anyone on a tipped wage. A sick shift is paid at the greater of your base wage or the full state minimum, so the low tipped cash wage isn’t the floor. Tips themselves are left out of the calculation, though.
The 72-hour yearly limit at bigger restaurants is higher than the 40 hours in states like New Jersey, and the state’s own FAQ walks through a restaurant whose headcount changes with the seasons. At tax time, filing the MI-1040 is how you collect the 30% credit, even with no tax due. Plus the federal programs.
Official sources
Last verified
. Checked the agency pages linked above.