Bill > HB4322

This bill amends Michigan's wage and hour law to strengthen protections against employee misclassification and provide more robust enforcement mechanisms. The bill redefines several key terms, including creating a specific definition for "independent contractor" that requires workers to be free from the payer's control, performing work outside the payer's usual business, and engaged in an independently established trade. It prohibits employers from classifying employees as independent contractors, and places the burden of proof on employers to demonstrate proper classification. The bill increases penalties for misclassification, including potential fines up to $10,000, requiring employers to pay 100% annual penalties on unpaid wages, and allowing for exemplary damages up to three times the amount of unpaid wages. Additionally, the bill establishes a new Wages and Fringe Benefits Fund in the state treasury, through which collected penalties will be partially distributed to affected employees. The legislation also expands protections for workers who file complaints, making it illegal for employers to retaliate against employees who assert their rights under the act. The bill transfers regulatory oversight from the Department of Licensing and Regulatory Affairs to the Department of Labor and Economic Opportunity, signaling a more focused approach to labor law enforcement.

Business and Industry

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4322