Is Your Michigan Small Business HR Compliant? A 6-Point Self-Check
Most small business owners I talk to can't say for certain whether their HR is compliant. They're not careless. They're busy, and compliance is the kind of thing that stays invisible right up until it isn't.
Here's the hard part: not knowing is the risk. The gaps you can't see are the ones that turn into a complaint, a fine, or an unemployment claim you can't win.
The most expensive compliance problems are the ones you don't know you have.
So here's a quick Michigan small business HR compliance self-check. Six areas where small businesses most often have exposure. Go through them honestly. If you can confidently check all six, you're in better shape than most. If a few make you wince, that's useful to know now, while they're still easy to fix.
1. Is your employee handbook current?
Your handbook is your first line of defense. It sets expectations, and a signed acknowledgment from each employee is what proves they knew the rules. If your handbook hasn't been reviewed in the last year, or you don't have signed acknowledgments on file, that's gap number one. Michigan law has shifted enough recently that a handbook from a couple of years ago is almost certainly out of date.
2. Are you current on Michigan's 2026 wage rules?
As of January 1, 2026, Michigan's minimum wage is $13.73 an hour, and the tipped minimum is 40 percent of that, with employers required to make up the difference whenever tips fall short. If your payroll didn't change at the start of the year, check it now. The team at Cunningham Dalman has a clear rundown of the 2026 wage updates.
3. Are you tracking earned sick time?
Michigan's Earned Sick Time Act now reaches small employers, and it requires accrual tracking for hourly workers regardless of your size. If you're not actively tracking accrual and use, you're exposed. This is one of the most common gaps I see, because it's new and it's easy to assume it doesn't apply to a small team. It does. For a fuller picture of what changed, this 2026 Michigan employment law update is worth a read.
4. Are your workers classified correctly?
Calling someone a contractor doesn't make them one. Misclassifying an employee as an independent contractor is one of the most expensive mistakes a small business can make, between back wages, payroll taxes, and penalties. If you use contractors, it's worth confirming each one actually meets the test and watching Lansing, since the rules here could tighten.
5. Is your documentation in order?
When something goes wrong, your documentation is what protects you. Dated notes from performance conversations, a consistent paper trail, and clear records of decisions. If your "file" on a struggling employee is a few scattered emails and your memory, that's a gap. Build the habit before you need it, not the week you need it.
6. Are your required postings up?
Both Michigan and federal law require certain labor law posters in your workplace. It's a small thing that's easy to overlook and easy to fix. If you can't picture where yours are, they may not be up or may be out of date.
What to Do If You Found Gaps
If a few of these landed, you're normal, and you're also exactly the person I built my free resources for. My free 25-point Michigan HR Compliance Checklist walks through these areas and more so you can see precisely where you stand. And if you'd rather have a second set of eyes, a free 30-minute HR Health Check will give you a ranked picture of your real risks and tell you what's already fine so you can stop worrying about it.
A quick note: this is a starting point, not legal advice. For anything specific to your situation, it's worth a conversation with an HR pro or an employment attorney. No pitch, no pressure, just clarity. 🌸
