DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

                           WAGE AND HOUR DIVISION

                               GENERAL RULES

(By authority conferred on the director of the  department  of  consumer  and 
industry services by section 6 of 1964 PA 154, MCL 408.386)


                        PART 1. GENERAL PROVISIONS


R 408.701 Definitions.
  Rule 1. As used in these rules:
  (a) "Act" means Act No. 154 of the Public Acts of 1964, as  amended,  being 
§408.381 et seq. of the Michigan Compiled Laws.
  (b) "Administrative Capacity" means an employee who  is  compensated  on  a 
salary basis at not less than $250.00 per week  and  whose  primary  duty  is 
nonmanual work directly related  to  the  administration  of  an  educational 
institution.
  (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 1½ times the  regular 
hours worked in excess of 40 hours in a week and paid at some future time.
  (e) "Executive Capacity" means an employee to whom  all  of  the  following 
provisions apply:
  (i) Compensation is on a salary basis at not less than $250.00 per week.
  (ii) The employee's primary duty is management.
  (iii) The employee supervises 2 or more employees.
  (f) "Fee" means a fixed amount for a  service  provided  or  job  completed 
regardless of time required for completion.
  (g) "Paid Time Off" means compensation for time off paid  to  the  employee 
for vacation, personal time, or sick time.
  (h) "Professional Employee" means an  employee  who  is  compensated  on  a 
salary basis at no less than $250.00 per week 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.      
  (i) "Salary" means payment of a  fixed  amount  not  subject  to  reduction 
because of variations in the quantity or quality of work performed.
  (j) "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.

  History:  1954 AC; 1979 AC; 1998-2000.


R 408.702 Records.
  Rule 2. (1) An employer shall keep employment  records  for  each  employee 
showing all of the following:
  (a) Name.
  (b) Home address.
  (c) Date of birth.
  (d) Occupation in which employed.
  (e) Total daily hours worked, showing the starting and  ending  times  each 
day, computed to the nearest tenth of an hour, or other finer measure.
  (f) Total hours worked in each pay period.
  (g) Total hours worked in each work period when the work  period  does  not 
coincide with the pay period.
  (h) Total hourly, daily, or weekly basic wage.
  (i) Total wages paid each pay period.
  (j) Itemization of all deductions made each pay period.
  (k) Itemization of tips received in each pay period.
  (2) An employer shall keep records for employees paid on a piecework  basis 
to indicate pieces produced.
  (3) If a credit is taken for gratuities received by an employee,  then  the 
employment records shall contain for each pay period in which the credit  was 
taken a written statement  of  the  amount  of  gratuities  received  by  the 
employee.  The statement shall be signed by the employee and dated before the 
date the paycheck was received.
  (4) Records required under this rule shall be preserved by the employer for 
not less than 3 years.

  History:  1979 AC; 1981 AACS; 1998-2000 AACS.


R  408.703   Rescinded.

  History:  1979 AC; 1981 AACS; 1998-2000 AACS.


R  408.704   Rescinded.

  History:  1979 AC; 1981 AACS; 1998-2000 AACS.


R  408.705   Rescinded.

  History:  1979 AC; 1981 AACS; 1998-2000 AACS.


R 408.706 Complaint; filing date; time limitation.
  Rule 6. (1) A complaint shall be considered filed with the department as of 
the date it is received by the department.
  (2) A claim must be filed with the department within 3 years of the date of 
the alleged violation.

  History:  1981 AACS; 1998-2000 AACS.

R  408.711   Scale of piecework for harvesting vegetables.
  Rule 11. The following scale of piecework applicable to  the  harvesting of 
vegetables is determined by the wage deviation board to   be   equivalent  to 
the prevailing minimum hourly wage for such work:

Crop/Unit				Rate Eff.	Rate Eff.	Rage Eff.
					1/1/79		1/1/80		1/1/81

Aspararus (pound)			.091		.097		.105
Beans (Snap)(Bushel)			$2.58		$2.76		$2.98
Cucumber (Pickles)(Pound)		.036		.038		.041
Greens (25 Pound Crate)			.534		.571		.617
Lettuce (Head)(24 Head Crate)		.158		.169		.183
Onions, Dry (Yellow)(5 Peck Crate)	.217		.232		.251
Onions, Dry (White)(5 Peck Crate)	.381		.407		.440
Onions, Green (Bunch)(8-9 Onions
   Per Bunch)				.058		.062		.067
Peppers, "Cherry" (Bushel)		$1.86		$1.99		$2.15
Peppers, "Long Green" (Bushel)		.504		.539		.582
Potatoes (Bushel)			.172		.184		.199
Radishes (Dozen Bunches)(18-20
   Radishes Per Bunch)			.480		.513		.554	
Tomatoes, Fresh (5/8 Bushel
   Hamper)				.425		.454		.491
Tomatoes, Process (5/8 Bushel
   Hamper)				.31		.33		.36

  History:  1979 AC.


R  408.712   Scale of piecework for harvesting fruits.
  Rule 12. The following scale of piecework applicable to  the  harvesting of 
fruits is determined by the wage deviation board to  be  equivalent   to  the 
prevailing minimum hourly wage for such work:

Crop/Unit				Rate Eff.	Rate Eff.	Rate Eff.
					1/1/79		1/1/80		1/1/81

Apples (Bushel)(Stripping Rate)		.335		.358		.387
Apples, Crab (Bushel)(Stripping
   Rate)				$1.16		$1.24		$1.34
Blackberries (Quart)			.326		.348		.376
Blueberries, Hand Picked (Pound)	.173		.185		.20
Blueberries, Hand Vibrator
   Assisted (Pound)			.046		.049		.053
Cherries, Tart (27 Pound Lug)		$1.61		$1.72		$1.86
Cherries, Sweet (24 Pound Lug)		$1.77		$1.89		$2.04
Grapes, Concord & Niagara
   (Pound)				.018		.019		.021
Grapes, Delaware (Pound)		.023		.025		.027
Peaches, Process (Bushel)		.376		.402		.434
Pears (Bushel)				.520		.556		.601
Plums (Blue Damson, etc.)(Bushel)	$2.32		$2.48		$2.98
Prunes (Italian, Stanley, etc)
   (Bushel)				.912		.975		$1.05
Raspberries, Black (Quart)		.326		.348		.376
Raspberries, Red (Quart)		.454		.485		.524
Strawberries, Fresh (Quart)		.173		.185		.20
Strawberrues, Process (Pound)		.124		.133		.144

  History:  1979 AC.


R  408.713   Scale  of  piecework  for  sorting  and  bunching  strawberry
  plants.
  Rule 13. The following scale of piecework applicable to  the  sorting   and 
bunching of strawberry plants is determined by the wage deviation board to be 
equivalent to the prevailing minimum hourly wage for such work:

Crop/Unit				Rate Eff.	Rate Eff.	Rate Eff.
					1/1/79		1/1/80		1/1/81

Strawberries, Machine
   Assisted (Thousand)			$5.71		$6.10		$6.59
Strawberries, Nonmechanically
   Assisted (Thousand)			$7.62		$8.15		$8.81

  History:  1954 ACS 55, Eff. Aug. 14, 1968; 1954 ACS  65,  Eff. Sept. 21,
1970; 1954 ACS 83, Eff. Apr. 2, 1975; 1954  ACS  95,  Eff. June 13,  1978;
1954 ACS 99, Eff. Apr. 18, 1979; 1979 AC.


                       PART 2. OVERTIME COMPENSATION


R 408.721  Determining workweek for overtime compensation.
  Rule 21. (1) 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.
  (2) Once the beginning time of an employee's 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 requirements of the act.
  (3) 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.

  History:  1979 ACS 8, Eff. Dec. 2, 1981; 2000 MR 1, Eff. Feb. 1, 2000.

R 408.722 Work period.
  Rule 22. (1) 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.
  (2) The work period need not coincide with the pay period.
  (3) 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.
  (4) An employer may have different work periods for different employees.

  History:  1979 ACS 8, Eff. Dec. 2, 1981; 2000 MR 1, Eff. Feb. 1, 2000.


R 408.723 Computing regular rate of pay for overtime compensation.
  Rule 23. (1) If an employee is paid on an hourly rate  plus  commission  or 
salary plus commission, then the salary and commission shall be considered as 
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.
  (2) 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.

  History:  1981 AACS; 1998-2000 AACS.


R  408.724   Rescinded.

  History:  1981 AACS; 1998-2000 AACS.


R  408.725   Rescinded.

  History:  1981 AACS; 1998-2000 AACS.


R  408.726   Rescinded.

  History:  1981 AACS; 1998-2000 AACS.


R  408.727   Rescinded.

  History:  1981 AACS; 1998-2000 AACS.


R 408.728 Amusement and  recreational  establishments  exempt  from  overtime 
provisions.
  Rule 28.  (1) An employer's business shall be considered  an  amusement  or 
recreational  establishment  if  it  complies  with  all  of  the   following 
provisions:
  (a)  It is open for the general public at a fixed site.
  (b)  It is open primarily to  provide  leisure  activities  for  those  who 
attend.
  (c)  It does not operate for more than 7 months in a calendar year.
  (2) 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.
  (3) 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.
  (4) If an  amusement  or  recreational  establishment  operates  at  widely 
separated fixed locations, the exempt status of each fixed location shall  be 
determined separately.

  History:  1981 AACS; 1998-2000 AACS.


R 408.729 Employees of an amusement or recreational establishment.
  Rule 29.  (1) 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.
  (2) 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.

  History:  1981 AACS; 1998-2000 AACS.


R 408.730 Employment in agriculture.
  Rule 30.  (1) 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.
  (2) 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.

  History:  1981 AACS; 1998-2000 AACS.


R  408.731, R  408.732   Rescinded.

  History:  1979 AC; 1981 AACS.


R  408.733   Rescinded.

  History:  1981 AACS; 1998-2000 AACS.


R  408.734   Rescinded.

  History:  1981 AACS; 1998-2000 AACS.


R  408.735   Rescinded.

  History:  1981 AACS; 1998-2000 AACS.