Mich. Admin. Code R. 408.701 - Definitions

Rule 1.

As used in these rules:

(a) "Act" means the improved workforce opportunity wage act, 2018 PA 337, MCL 408.931 to 408.945.

(b) "Administrative capacity" means an employee to whom all of the following apply:

(i) Compensation is on a salary basis at no less than the federal standard salary level per week for overtime exempt employees.

(ii) The employee's primary duty is the performance of office or non-manual work directly related to the management or general business operations of the employer.

(iii) The employee uses discretion and independent judgment in matters of significance.

(c) "Commission" means all earnings of an employee, in addition to the hourly rate of pay, which the employee has been led to expect on a regular basis as a result of an employment contract, agreement, or promise.

(d) "Compensatory time" means paid time off earned at 11/2 times the regular hours worked in excess of 40 hours in a week and paid at some future time.

(e) "Department" means the department of licensing and regulatory affairs.

(f) "Executive capacity" means an employee to whom all of the following provisions apply:

(i) Compensation is on a salary basis at not less than the federal standard salary level per week for overtime exempt employees.

(ii) The employee's primary duty is management.

(iii) The employee supervises 2 or more employees.

(g) "Fee" means a fixed amount for a service provided or job completed regardless of time required for completion.

(h) "Paid time off " means compensation for time off paid to the employee for vacation, personal time, or sick time.

(i) "Professional employee" means an employee who is compensated on a salary or fee basis at no less than the federal standard salary level per week for overtime exempt employees and whose primary duty is any of the following:

(i) Work in a field of science or learning that requires knowledge acquired by a prolonged course of specialized instruction.

(ii) Work in a recognized field of artistic endeavor that depends upon the talent of the employee.

(iii) Work in an educational institution as a teacher, tutor, instructor, or lecturer.

(j) "Salary" means payment of a fixed amount not subject to reduction because of variations in the quantity or quality of work performed.

(k) "Tipped employee" means an employee who receives gratuities and meets the requirements found in section 4d of the act, MCL 408.934d.

(l) "Workweek," as applied to an employee, means a fixed and regular recurring period of 168 hours or 7 consecutive 24-hour periods. Workweek need not coincide with the calendar week, but may begin on any day and at any hour of the day. For purposes of computing overtime pay, a single workweek may be established for 1 employee or different workweeks may be established for different employees or groups of employees.

Notes

Mich. Admin. Code R. 408.701

1954 AC; 1979 AC; 1998-2000; 2016 AACS; 2019 MR 8, Eff. 5/6/2019