Bill Text: MI HB4520 | 2017-2018 | 99th Legislature | Introduced
Bill Title: 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).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-04-26 - Bill Electronically Reproduced 04/25/2017 [HB4520 Detail]
Download: Michigan-2017-HB4520-Introduced.html
HOUSE BILL No. 4520
April 25, 2017, Introduced by Reps. Love, Schor, Faris, Geiss, Hertel, Chang, Sneller, Clemente, Chirkun, Guerra, LaGrand, Durhal, Elder, Lasinski, Yanez, Greig, Brinks, Green, Moss, Hammoud, Pagan, Sowerby, Cochran, Gay-Dagnogo, Rabhi, Hoadley, Singh, Peterson, Jones and Byrd and referred to the Committee on Commerce and Trade.
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.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. (1) Except for those deductions required or expressly
permitted by law or by a collective bargaining agreement, an
employer shall not deduct from the wages of an employee, directly
or indirectly, any amount including an employee contribution to a
separate segregated fund established by a corporation or labor
organization under section 55 of the Michigan campaign finance act,
1976 PA 388, MCL 169.255, without the full, free, and written
consent of the employee, obtained without intimidation or fear of
discharge for refusal to permit the deduction. However, an employer
that is a public body, as defined in section 11 of the Michigan
campaign finance act, 1976 PA 388, MCL 169.211, shall not deduct,
directly or indirectly, any amount from an employee's wages for a
contribution to a separate segregated fund established under
section 55 of the Michigan campaign finance act, 1976 PA 388, MCL
169.255, or a contribution or any payment to any committee
established
under the federal election campaign act of 1971, Public
Law
92-225, 2 USC 431 to 455.52
USC 30101 to 30126.
(2) Except as provided in this subsection and subsections (4)
and (5), a deduction for the benefit of the employer requires
written consent from the employee for each wage payment subject to
the
deduction, and the cumulative amount of the deductions shall
must not reduce the gross wages paid to a rate less than the
minimum rate as prescribed in the workforce opportunity wage act,
2014 PA 138, MCL 408.411 to 408.424. A nonprofit organization shall
obtain a written consent from an employee for deductions to that
nonprofit organization that qualify as charitable contributions
under federal law. However, this subsection does not require the
nonprofit organization to obtain from an employee a separate
written consent for each subsequent paycheck from which deductions
that qualify as charitable contributions that benefit the employer
are made. An employee at any time may rescind in writing his or her
authorization to have charitable contributions deducted from his or
her paycheck. As used in this subsection, "nonprofit organization"
means an organization that is exempt from taxation under section
501(c)(3) of the internal revenue code of 1986, 26 USC 501(c)(3).
(3)
Each deduction from the wages of an employee shall must be
substantiated
in the records of the employer and shall must be
identified as pertaining to an individual employee. Prorating of
deductions between 2 or more employees is not permitted.
(4) Within 6 months after making an overpayment of wages or
fringe benefits that are paid directly to an employee, an employer
may deduct the overpayment from the employee's regularly scheduled
wage payment without the written consent of the employee if all of
the following conditions are met:
(a) The overpayment resulted from a mathematical
miscalculation, typographical error, clerical error, or misprint in
the processing of the employee's regularly scheduled wages or
fringe benefits.
(b) The miscalculation, error, or misprint described in
subdivision (a) was made by the employer, the employee, or a
representative of the employer or employee.
(c) The employer provides the employee with a written
explanation of the deduction at least 1 pay period before the wage
payment affected by the deduction is made.
(d) The deduction is not greater than 15% of the gross wages
earned in the pay period in which the deduction is made.
(e) The deduction is made after the employer has made all
deductions expressly permitted or required by law or a collective
bargaining agreement, and after any employee-authorized deduction.
(f) The deduction does not reduce the regularly scheduled
gross wages otherwise due the employee to a rate that is less than
the greater of either of the following:
(i) The minimum rate as prescribed by subsection (2).
(ii) The minimum rate as prescribed by the fair labor
standards act of 1938, 29 USC 201 to 219.
(5) If an employer pays any amount of the employee's debt
under a default judgment entered under section 4012(9) or (10) of
the revised judicature act of 1961, 1961 PA 236, MCL 600.4012, the
employer may deduct that amount from the employee's regularly
scheduled wage payment without the written consent of the employee
if all of the following conditions are met:
(a) The employer provides the employee with a written
explanation of the deduction at least 1 pay period or 10 business
days, whichever is greater, before the wage payment affected by the
deduction is made.
(b) The deduction is not greater than 15% of the gross wages
earned in the pay period in which the deduction is made.
(c) The deduction is made after the employer has made all
deductions expressly permitted or required by law or a collective
bargaining agreement, and after any employee-authorized deduction.
(d) The deduction does not reduce the regularly scheduled
gross wages otherwise due the employee to a rate that is less than
the greater of either of the following:
(i) The minimum rate as prescribed by subsection (2).
(ii) The minimum rate as prescribed by the fair labor
standards act of 1938, 29 USC 201 to 219.
(6) An employee who believes his or her employer has violated
subsection (4) or (5) may file a complaint with the department
within 12 months after the date of the alleged violation.
(7) As used in this section, "employer" means an individual,
sole proprietorship, partnership, association, or corporation,
public or private, this state or an agency of this state, a city,
county, village, township, school district, or intermediate school
district, an institution of higher education, or an individual
acting directly or indirectly in the interest of an employer who
employs 1 or more individuals.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
