Bill > HB4253

This bill amends Michigan's wage and benefits law to update several key definitions and provisions regarding employee compensation upon termination of employment. The bill changes the responsible state department from the Department of Licensing and Regulatory Affairs to the Department of Labor and Economic Opportunity, and expands the definition of "fringe benefits" to explicitly include holidays, time off for sickness or injury, paid vacation leave, bonuses, authorized employment expenses, and employer contributions. The bill introduces new definitions for "furlough" (a temporary separation from work due to business shutdown) and "paid time off" (time off that an employee can use for any reason while receiving regular earnings). The legislation requires employers to pay employees all earned wages when they voluntarily leave or are discharged, and adds a specific provision mandating that employers pay out accrued but unused paid vacation leave upon an employee's separation, with two key exceptions: if the separation is a furlough or if the employer offers unlimited paid vacation leave. These changes aim to provide more clarity and protection for employees regarding their compensation rights. The bill is set to take effect on January 1, 2027, giving employers ample time to adjust to the new requirements.

Business and Industry

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4253