Bill > HB4318

This bill amends an existing Michigan labor law to significantly increase penalties for employers who intentionally fail to pay wages and fringe benefits, creating a graduated penalty system based on the total value of unpaid compensation. Under the new law, if an employer intentionally does not pay wages with the intent to defraud, they will face criminal charges with penalties that escalate based on the amount of money owed. For amounts less than $200, the penalty is a misdemeanor with up to 93 days in jail and a fine of up to $500 or three times the wage value. As the unpaid amount increases, the penalties become more severe: for amounts between $200 and $1,000, it's a misdemeanor with up to one year in jail; for amounts between $1,000 and $20,000, it becomes a felony with up to five years in prison; and for amounts over $20,000, the penalties can include up to 20 years in prison and fines up to three times the unpaid wages. The bill also introduces enhanced penalties for repeat offenders, such as increased prison time and higher fines for employers with previous convictions under this law. The amendments are designed to provide stronger deterrents against wage theft and protect employees' rights to timely and full compensation. The law will take effect 90 days after its enactment.

Business and Industry

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4318