The bill amends section 7 of the 1978 PA 390, which regulates the payment of wages and fringe benefits to employees in Michigan. Key changes include the requirement for employers to obtain written consent from employees for any deductions from their wages, except for those explicitly permitted by law or collective bargaining agreements. The bill 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, the bill specifies that deductions must be substantiated in employer records and prohibits prorating deductions between employees.

Further provisions allow employers to deduct overpayments from wages without employee consent under certain conditions, such as providing written notice prior to the deduction and ensuring that the deduction does not reduce wages below the minimum rate. The bill also updates language to use gender-neutral terms, replacing phrases like "his or her" with "the employee's." The amendments aim to enhance employee protections regarding wage deductions and ensure transparency in the payroll process. The act will take effect 90 days after being enacted into law.

Statutes affected:
House Introduced Bill: 408.477