Bill Text: MI HB5391 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Labor; fair employment practices; deductions from wages without written consent of employee; include certain reimbursements related to garnishment. Amends sec. 7 of 1978 PA 390 (MCL 408.477). TIE BAR WITH: HB 5390'14
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2014-12-11 - Referred To Committee Of The Whole With Substitute S-1 [HB5391 Detail]
Download: Michigan-2013-HB5391-Engrossed.html
HB-5391, As Passed House, September 18, 2014
SUBSTITUTE FOR
HOUSE BILL NO. 5391
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 2012 PA 30.
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.
(2)
Except as provided in this subsection and subsection
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 not reduce the gross wages paid to a rate less
than
the minimum rate as defined prescribed in the minimum wage law
of
1964, 1964 PA 154, MCL 408.381 to 408.398. 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, 26 USC 501(c)(3).
(3) Each deduction from the wages of an employee shall be
substantiated in the records of the employer and shall 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, chapter 676, 52 Stat. 1060, 29 USC 201 to 216 and 217
to
219.
(5) If an employer is ordered to pay any part of the
employee's debt under section 4012 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 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) (5)
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) (6)
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 does not take effect
unless House Bill No. 5390 of the 97th Legislature is enacted into
law.
