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MI HB4640

MI HB4640
Labor: fair employment practices; deductions from wages without written consent of employee; revise notice period for certain deductions related to garnishment. Amends sec. 7 of 1978 PA 390 (MCL 408.477).


summary

Introduced
05/21/2019
In Committee
05/21/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

100th Legislature

Bill Summary

A bill to amend 1978 PA 390, entitled "An act to regulate the time and manner of payment of wages and fringe benefits to employees; to prescribe rights and responsibilities of employers and employees, and the powers and duties of the department of labor; to require keeping of records; to provide for settlement of disputes regarding wages and fringe benefits; to prohibit certain practices by employers; to prescribe penalties and remedies; and to repeal certain acts and parts of acts," by amending section 7 (MCL 408.477), as amended by 2015 PA 15.

AI Summary

This bill amends the 1978 Michigan law that regulates the time and manner of wage and fringe benefit payments to employees. The key provisions are: 1) Employers cannot deduct amounts from employee wages without the employee's full, free, and written consent, except for deductions required or permitted by law or a collective bargaining agreement. However, public employers are prohibited from deducting any amount from wages for contributions to political funds. 2) Deductions for the employer's benefit require written consent for each wage payment, and the deductions cannot reduce the employee's wages below the minimum wage. Nonprofit organizations can obtain ongoing written consent from employees for charitable contribution deductions. 3) Employers must maintain records substantiating individual employee deductions, and cannot prorate deductions between employees. 4) Employers can deduct overpayments of wages or fringe benefits without written consent under certain conditions, such as the overpayment being due to a calculation error. 5) Employers can also deduct amounts paid on an employee's debt under a default judgment, again without written consent, under certain conditions. 6) Employees can file complaints with the state labor department if they believe their employer violated the provisions on deducting overpayments or default judgment amounts. The bill takes effect 90 days after being enacted into law.

Committee Categories

Business and Industry

Sponsors (31)

Last Action

Bill Electronically Reproduced 05/21/2019 (on 05/21/2019)

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