Michigan Worker Classification: Exempt vs Non-Exempt Hospitality Roles

Michigan Worker Classification: Exempt vs Non-Exempt Hospitality Roles - Key Takeaways

The minimum salary threshold for exempt employees in Michigan is $844 per week as of July 1, 2024, increasing to $1,128 per week on January 1, 2025.
Hospitality roles like hotel managers often qualify as exempt under executive exemptions, while positions such as servers and front desk clerks are generally non-exempt.
Proper classification requires passing the salary basis, salary level, and duties tests as per the Fair Labor Standards Act (FLSA).

The classification of hospitality workers in Michigan as exempt or non-exempt affects overtime eligibility and wage requirements. For clarity on terminology, see the non-exempt meaning.

This guide helps employers understand key criteria to correctly classify roles under Michigan and federal law. For broader context, review job posting compliance.

1. Understanding Exempt and Non-Exempt Classifications for Hospitality Roles in Michigan

Classifying workers as exempt or non-exempt under the FLSA determines whether they are entitled to overtime pay.

In hospitality, roles differ greatly—from managerial to manual service positions—making classification essential for compliance.

Michigan follows federal rules with additional attention to the correct salary thresholds effective since mid-2024.

2. Salary Tests for Exempt Hospitality Employees in Michigan

Exempt employees must pass two salary tests:

Salary Basis Test: Employees must be paid a fixed salary unaffected by work quantity or quality.
Salary Level Test: As of July 1, 2024, the weekly salary must be at least $844, rising to $1,128 per week on January 1, 2025.

These thresholds are important benchmarks for Michigan hospitality employers to meet to lawfully classify employees as exempt.

For managerial roles, consult the hotel manager job description when evaluating exemption status.

3. Duties Test for Exempt Classification in Hospitality Roles

Beyond salary, employees must meet the duties criteria for exemptions:

Executive Exemption: Managing a department or subdivision, supervising at least two full-time employees, and directing hiring/firing decisions.
Administrative Exemption: Performing non-manual tasks related to business operations with discretion and independent judgment.
Professional Exemption: Engaging in work requiring advanced knowledge from prolonged education, such as an executive chef.

Most frontline hospitality workers do not meet these duties tests and are therefore non-exempt.

Review the server job description to align frontline duties with non-exempt classification.

4. Common Hospitality Roles and Their Classification in Michigan

Here’s how typical hospitality roles align with exempt and non-exempt status:

Hotel Manager: Usually exempt under the executive exemption due to supervisory and decision-making authority.
Executive Chef: May qualify as exempt under the professional exemption if advanced culinary skills and education are required.
Front Desk Clerk: Typically non-exempt, performing routine tasks without managerial responsibilities.
Server: Generally non-exempt as the role involves manual labor without discretionary duties.

For culinary leadership, see the executive chef job description when assessing professional duties.

Front desk teams should align with the receptionist job description for accurate classification.

5. Compliance Considerations and Best Practices for Michigan Hospitality Employers

Employers should take proactive steps to ensure proper classification:

Regularly review and update job descriptions to reflect actual duties.
Evaluate salary payments against the current thresholds and adjust where necessary.
Consult with HR professionals or employment attorneys for complex cases.
Keep thorough documentation of classifications and communication with employees.

Misclassification risks penalties, back pay for overtime, and legal challenges.

If you employ tipped staff, follow best practices on jobs for tipped employees.

Avoid wage-and-hour pitfalls by understanding off-the-clock risks.

6. Resources for Michigan Hospitality Employers on Worker Classification

For authoritative guidance, consult these key resources:

Michigan Worker Classification: Exempt vs Non-Exempt Hospitality Roles - Conclusion

Determining exempt versus non-exempt status in Michigan’s hospitality industry hinges on meeting salary and duties tests defined by the FLSA and Michigan labor rules.

Employers must stay current with salary threshold changes, accurately evaluate employee duties, and maintain compliance to avoid penalties and ensure fair treatment of workers.

01. What is the minimum salary threshold for exempt employees in Michigan?

As of July 1, 2024, the minimum salary threshold for exempt hospitality employees in Michigan is $844 per week, increasing to $1,128 per week on January 1, 2025.

02. Which hospitality roles are typically exempt in Michigan?

Hotel managers usually qualify as exempt under the executive exemption, while roles like servers and front desk clerks are generally non-exempt.

03. What are the key tests for classifying an employee as exempt?

Employees must meet the salary basis, salary level, and duties tests as defined by the FLSA to be classified as exempt.

04. How often should employers review job descriptions for classification accuracy?

Employers should regularly review and update job descriptions to ensure they accurately reflect employee duties, helping maintain correct classification.

05. What are the consequences of misclassifying employees in Michigan?

Misclassification can lead to penalties, back pay for overtime, and potential legal challenges.