This bill amends the existing law regulating the payment of wages and fringe benefits to employees in Michigan, specifically updating sections 1 and 5 of 1978 PA 390. Key changes include redefining the "Department" to refer to the Department of Labor and Economic Opportunity instead of the Department of Licensing and Regulatory Affairs. The definitions of "fringe benefits" and "paid vacation leave" have been expanded to include specific types of compensation, such as paid vacation leave and contributions made on behalf of an employee. 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.

The bill also modifies the requirements for employers regarding the payment of wages upon an employee's separation from employment. It stipulates that employers must pay all wages earned and due to employees who voluntarily leave or are discharged as soon as the amount can be determined, with specific provisions for employees engaged in hand harvesting of crops. Furthermore, it mandates that employers must pay accrued but unused paid vacation leave to employees upon separation, with exceptions for furloughed employees or those provided with unlimited vacation leave. The amendments are set to take effect on January 1, 2027.

Statutes affected:
House Introduced Bill: 408.471, 408.475