This bill amends the 1978 PA 390, which governs wage and fringe benefit payments to employees in Michigan, by redefining the "Department" from the Department of Licensing and Regulatory Affairs to the Department of Labor and Economic Opportunity. It clarifies the definitions of "employee" and "independent contractor," explicitly stating that independent contractors are not considered employees. The bill introduces new provisions requiring written consent from employees for wage deductions that benefit the employer and establishes guidelines for managing overpayments and charitable contributions. Additionally, it prohibits employer retaliation against employees for filing complaints or disclosing wage information and mandates the provision of wage information for similarly situated employees upon request.

The bill also creates a "wages and fringe benefits fund" to support enforcement of the act, with the Department designated as the administrator. It establishes stricter penalties for employers who violate wage payment laws, categorizing violations into misdemeanors and felonies based on the amount of unpaid wages and fringe benefits. The bill allows for a 100% annual penalty on unpaid wages and fringe benefits and permits exemplary damages of up to three times the amount owed in cases of egregious violations. Furthermore, it mandates that a portion of collected penalties be distributed to affected employees and grants the department authority to notify relevant agencies of violations, ultimately aiming to enhance employee protections and ensure compliance with wage laws in Michigan.

Statutes affected:
Substitute (S-1): 408.471
Senate Introduced Bill: 408.471