The bill amends the existing law regulating the payment of wages and fringe benefits to employees in Michigan. It introduces several significant changes, including increasing the penalty rate for late payments from 10% to 100% annually on wages and fringe benefits due, starting from the time a complaint is filed until payment is made. Additionally, the bill allows for exemplary damages of up to three times the amount of wages and fringe benefits owed if the violation is deemed flagrant or repeated.
Furthermore, the bill modifies the civil penalty for employers who violate the act, raising the maximum fine from $1,000 to $10,000. It also clarifies that the civil fine must be credited to the state's general fund. The language of the bill updates certain terms, such as changing "who" to "that" in various sections, and specifies that the department may order employers to cover attorney and hearing costs related to violations. The amendments are set to take effect 90 days after the bill is enacted into law.
Statutes affected: House Introduced Bill: 408.488