HOUSE BILL No. 5085

 

October 18, 2011, Introduced by Reps. Shirkey and Opsommer and referred to the Committee on Redistricting and Elections.

 

     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 1995 PA 278.

 

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,

 

Act No. 388 of the Public Acts of 1976, being section 169.255 of

 


the Michigan Compiled Laws, 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.

 

     (2) Except as provided in this subsection and subsection (4),

 

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 minimum rate as

 

defined in the minimum wage law of 1964, Act No. 154 of the Public

 

Acts of 1964, being sections 408.381 to 408.398 of the Michigan

 

Compiled Laws. 1964 PA 154, MCL 408.381 to 408.398. 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 U.S.C. USC 201 to 216

 

and 217 to 219.

 

     (5) An employee who believes his or her employer has violated

 

subsection (4) may file a complaint with the department within 12

 

months after the date of the alleged violation.

 

     (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.