The bill amends Michigan's existing labor laws concerning the payment of wages and fringe benefits, introducing new definitions and clarifications regarding the classification of employees and independent contractors. Notably, it specifies that "employee" does not include independent contractors and introduces definitions for "payer" and "independent contractor." The bill also establishes a prohibition against employers misclassifying employees as independent contractors without justification, placing the burden of proof on the employer. Additionally, it enhances the definition of fringe benefits to encompass various forms of compensation and benefits, while also strengthening employee protections against retaliation for filing complaints or disclosing wage information.

Moreover, the bill creates a wages and fringe benefits fund to support the enforcement of these regulations, ensuring that allocated funds do not lapse at the end of the fiscal year and are exclusively used for enforcement purposes. It introduces a tiered penalty system for employers who violate wage laws, with civil fines reaching up to $10,000 for violations, and mandates that 50% of collected penalties be paid to affected employees. The department of labor is granted enhanced authority to impose penalties and initiate civil actions against non-compliant employers, with the amendments set to take effect 90 days after enactment.

Statutes affected:
Senate Introduced Bill: 408.471