Department of Consumer & Industry Services
Filed with the Secretary of State on Jan. 14, 2000. These rules take effect 15 days after filing with the Secretary of State.
(By authority conferred on the director of the department of consumer and industry services by section 6 of 1964 PA 154, MCL 408.386).
R 408.721, R 408.722, R 408.723, R 408.728, R 408.729, and R 408.730 of the Michigan Administrative Code are amended and R 408.724, R 408.725, R 408.726, R 408.727, R 408.733, R 408.734, and R 408.735 of the code are rescinded as follows:
PART 2. OVERTIME COMPENSATION
R 408.721 Determining workweek for overtime compensation
An employer shall establish an employee's workweek and shall indicate the beginning time and day of the workweek in the employment record for the employee.
Once the beginning time of an employee workweek is established, it remains fixed and may be changed only if the change is intended to be permanent and is not designed to evade the overtime requirement of the act.
Each workweek stands alone. Averaging of hours over 2 or more weeks is prohibited, regardless of whether the employee works on a standard or swing shift schedule and regardless of whether the employee is paid on an hourly, daily, weekly, biweekly, monthly, piecework, commission or other basis, except as otherwise provided by law.
R 408.722 Work period
An employer shall establish an employee's work period and shall indicate the beginning and ending time and date of the work period in the employment record for the employee.
The work period need not coincide with the pay period.
The beginning and ending date of a work period shall not be changed, regardless of the number of hours worked within the period, unless the change is intended to be permanent and is not designed to evade the overtime requirements of the act.
An employer may have different work periods for different employees.
R 408.723 Computing regular rate of pay for overtime compensation
If an employee is paid on an hourly rate plus commission or salary plus commission, then the salary and commission shall be considered gross earnings for the workweek, and the regular rate is obtained by dividing the sum by the number of hours for which the salary was paid.
If an employee is paid on a piece-rate basis, then the regular rate of pay is computed by adding together the total earnings of the workweek from piece rates and all other earnings and any sums paid for other hours worked. This sum total is divided by the number of hours worked in that week to yield the pieceworker's regular rate for that week.
R 408.724 Rescinded
R 408.725 Rescinded
R 408.726 Rescinded
R 408.727 Rescinded
R 408.728 Amusement and recreational establishments exempt from overtime provisions.
An employer's business shall be considered an amusement or recreational establishment if it complies with all of the following provisions:
It is open for the general public at a fixed site.
It is open primarily to provide leisure activities for those who attend.
It does not operate for more than 7 months in a calendar year.
A grocery store, restaurant, motel, curio, souvenir shop, or any other retail and service establishment is not considered an amusement or recreational establishment unless it is so related to an amusement or recreational establishment that it could not, in a reasonable manner, offer its services to the general public independently, and is not open to the general public beyond the months the amusement or recreational establishment to which it is related is open.
The exempt status of an amusement or recreational establishment and a grocery store, restaurant, motel, curio, souvenir shop, or other retail and service establishment operated under the same ownership shall be determined separately for each establishment.
If an amusement or recreational establishment operates at widely separated fixed locations, the exempt status of each fixed location shall be determined separately.
R 408.729 Employees of an amusement or recreational establishment
Employees of a central office or warehouse or office which services an amusement or recreational establishment shall not be considered employed by the amusement or recreational establishment.
An employee whose duties are divided between working for an amusement or recreational establishment and a nonexempt business owned by the same employer shall not be exempt from the overtime provisions of the act for any workweek in which work performed at the nonexempt business exceeds 20% of the hours worked.
R 408.730 Employment in agriculture
- An employee shall not be considered employed in agriculture for any workweek in which nonagricultural work exceeds 20% of the hours worked in the workweek.
- An employee of an establishment which produces agricultural commodities and sells such commodities to the general public shall not be considered employed in agriculture, regardless of his or her duties, if more than 50% of the gross income of the establishment results from sales to the general public.