---
title: "Benefits for Servers in Michigan"
description: "Michigan’s earned sick time law covers every employer: up to 72 paid hours at larger ones. The state EITC is 30% of the federal credit, up to $2,414."
url: https://www.tipmaxapp.com/us/answers/michigan/benefits
language: en
publisher: TipMax (Entermaurs Incorporated)
date_published: 2026-09-23
last_verified: 2026-09-23
---

# What benefits can servers get in Michigan?

**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 rules in Michigan

| Rule | What it says |
| --- | --- |
| 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, https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/frequently-asked-questions/wage-and-hour/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

- [Michigan LEO: Earned Sick Time Act](https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/paid-medical-leave-act)
- [Michigan LEO: Earned sick time FAQs](https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/frequently-asked-questions/wage-and-hour/earned-sick-time-faqs)
- [Michigan Department of Treasury: Earned Income Tax Credit for Working Families](https://www.michigan.gov/taxes/iit/tax-guidance/credits-exemptions/eitc)
- [Michigan DHHS: Healthy Michigan Plan](https://www.michigan.gov/healthymiplan)
- [Michigan DIFS: Health Insurance Marketplace](https://www.michigan.gov/difs/consumers/insurance/health-insurance/marketplace/health-insurance-marketplace-a)

## Last verified

September 23, 2026. Checked the agency pages linked above.

## About TipMax

Michigan sick time builds at 1 hour per 30 worked, and a log of your hours lets you check the balance your employer reports.

TipMax is an iPhone app for servers and bartenders that tracks tips and tip-outs and turns a restaurant menu into study flashcards.

Download TipMax free: https://apps.apple.com/us/app/tipmax-study-track-earn/id6744850146

---

TipMax Answers explains public government guidance on pay and workplace rules in plain English for tipped workers. It is **not legal, tax, or accounting advice**. Rules change and local rules can add to them. Confirm with the agency linked on this page or a qualified professional. TipMax the app helps you track tips and pay; it doesn’t enforce wage law or decide disputes.