The bill amends section 7 of the 1978 PA 390, which regulates wage and fringe benefit payments to employees in Michigan. Key changes include the requirement for employers to obtain full, free, and written consent from employees before making any deductions from their wages, except for those explicitly permitted by law or collective bargaining agreements. The bill also clarifies that deductions for charitable contributions to nonprofit organizations do not require separate consent for each paycheck, but employees can rescind their authorization at any time. Additionally, it specifies that deductions must be substantiated in employer records and prohibits prorating deductions among multiple employees.

Further provisions allow employers to deduct overpayments from wages without employee consent under certain conditions, such as providing written explanations and ensuring deductions do not exceed 15% of gross wages. The bill also updates language to be more inclusive, changing references from "his or her" to "the employee's." It establishes a complaint process for employees who believe their rights have been violated, allowing them to file complaints within 12 months of the alleged violation. The amendments are set to take effect 90 days after being enacted into law.

Statutes affected:
House Introduced Bill: 408.477