HOUSE BILL NO. 5734
May 16, 2024, Introduced by Reps. Paiz, Byrnes, Scott, Edwards, Dievendorf, Neeley, O'Neal,
Tsernoglou, Price, Hope, Wilson, Hood, McKinney, Brabec and Farhat and referred to the
Committee on Labor.
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 sections 1 and 5 (MCL 408.471 and 408.475), section 1
as amended by 2016 PA 18.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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1 Sec. 1. As used in this act:
2 (a) "Department" means the department of licensing and
3 regulatory affairs.labor and economic opportunity.
4 (b) "Employ" means to engage or permit to work.
5 (c) "Employee" means an individual employed by an employer.
6 (d) "Employer" means an individual, sole proprietorship,
7 partnership, association, or corporation, public or private; this
8 state or an agency of this state; a city, county, village,
9 township, school district, or intermediate school district; an
10 institution of higher education; or an individual acting directly
11 or indirectly in the interest of an employer who employs 1 or more
12 individuals. Except as specifically provided in the franchise
13 agreement, as between a franchisee and franchisor, the franchisee
14 is considered the sole employer of workers for whom the franchisee
15 provides a benefit plan or pays wages.
16 (e) "Fringe benefits" means compensation due an employee
17 pursuant to under a written contract or written policy for holiday,
18 any of the following:
19 (i) Holidays. time
20 (ii) Time off for sickness or injury. , time off for personal
21 reasons or vacation, bonuses, authorized
22 (iii) Paid vacation leave.
23 (iv) Bonuses.
24 (v) Authorized expenses incurred during the course of
25 employment. , and contributions
26 (vi) Contributions made on behalf of an employee.
27 (f) "Furlough" means a separation from employment that is the
28 result of a full or partial shutdown of an employer's operations if
29 the shutdown meets 1 of the following conditions:
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1 (i) The employer does not intend for the shutdown to last for
2 more than 30 days and the shutdown does not last for more than 30
3 days.
4 (ii) The shutdown is the result of a state of emergency
5 declared by the President of the United States or the governor of
6 this state.
7 (g) "Paid time off" or "paid vacation leave" means time off
8 from work that an employee can use for any reason and for which the
9 employer pays the employee earnings in accordance with a policy of
10 the employer or an agreement between the employer and the employee.
11 (h) (f) "Wages" means all earnings of an employee whether
12 determined on the basis of time, task, piece, commission, or other
13 method of calculation for labor or services. except those defined
14 as Wages does not include fringe benefits. under subdivision (e)
15 above.
16 Sec. 5. (1) An Subject to subsections (4) and (5), an employer
17 shall pay to an employee who voluntarily leaving leaves employment
18 all wages earned and due, as soon as the amount can, with due
19 diligence, be determined. However, an employer shall pay all wages
20 earned and due to an employee engaged in any phase of the hand
21 harvesting of crops as soon as the amount can, with due diligence,
22 be determined, but, in any event, not later than 3 days after the
23 employee's voluntary termination of employment.
24 (2) An Subject to subsections (4) and (5), an employer shall
25 immediately pay to an employee who has been discharged from
26 employment all wages earned and due, as soon as the amount can,
27 with due diligence, be determined.
28 (3) This section shall not apply to If an employee working
29 under contract who either voluntary leaves employment or is
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1 discharged from employment if and the amount due under subsection
2 (1) or (2) cannot be determined until the termination of the
3 contract, . In such cases, the employer shall pay to the employee,
4 under the provisions of in accordance with section 2, all wages
5 earned by the employee as nearly as they can be estimated. Final
6 The employer shall make the final payment shall be made in full at
7 the termination of the contract.
8 (4) Except as otherwise provided in subsection (5), if an
9 employee is separated from employment with an employer, the
10 employer shall pay to the employee all of the paid vacation leave
11 that the employee accrued but did not use.
12 (5) An employer is not required to pay to an employee paid
13 vacation leave under subsection (4) if either of the following
14 conditions is met:
15 (a) The employee's separation from employment is a furlough.
16 (b) The employer provided an unlimited amount of paid vacation
17 leave to the employee.
18 Enacting section 1. This amendatory act takes effect January
19 1, 2025.
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Statutes affected:
House Introduced Bill: 408.471, 408.475