Bill Text: MI SB0339 | 2019-2020 | 100th 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 16-0)
Status: (Introduced - Dead) 2019-05-21 - Referred To Committee On Government Operations [SB0339 Detail]
Download: Michigan-2019-SB0339-Introduced.html
SENATE BILL No. 339
May 21, 2019, Introduced by Senators HOLLIER, MOSS, POLEHANKI, ALEXANDER, WOJNO, GEISS, IRWIN, MCMORROW, HERTEL, BRINKS, MCCANN, BAYER, BULLOCK, SANTANA, ANANICH and CHANG and referred to the Committee on Government Operations.
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 30146.
(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. improved
workforce opportunity
wage act, 2018 PA 337, MCL 408.931 to 408.945. 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.