The bill amends the 1978 PA 390, which regulates the payment of wages and fringe benefits to employees in Michigan. Key changes include redefining the "Department" from the Department of Licensing and Regulatory Affairs to the Department of Labor and Economic Opportunity. The definitions of "fringe benefits" and "paid vacation leave" have been expanded to include specific types of compensation such as holidays, paid vacation leave, and authorized expenses incurred during employment. Additionally, a new definition for "furlough" has been introduced, clarifying the conditions under which an employee may be separated from employment due to a shutdown of operations.

Furthermore, the bill outlines the obligations of employers regarding the payment of wages upon an employee's voluntary departure or discharge. It specifies that employers must pay all wages earned and due as soon as they can be determined, with particular provisions for employees engaged in hand harvesting of crops. The bill also mandates that employers pay accrued but unused paid vacation leave to employees upon separation, with exceptions for furloughed employees or those with unlimited vacation leave policies. The amendments are set to take effect on January 1, 2027.

Statutes affected:
House Introduced Bill: 408.471, 408.475