The bill amends the existing law regulating the payment of wages and fringe benefits to employees in Michigan. It introduces new language that specifies the penalties for employers who fail to pay wages and benefits with the intent to defraud. The bill redefines the terminology from "fails to make payment of" to "does not pay" and changes the classification of the offense from a misdemeanor to a "crime." It establishes a tiered penalty system based on the value of unpaid wages and benefits, with specific punishments for different ranges of amounts owed, including potential imprisonment and fines that increase with the severity of the offense.

Under the new provisions, penalties vary significantly depending on the value of the unpaid wages and benefits. For amounts less than $200, the employer may face up to 93 days of imprisonment or a fine of up to $500. For amounts between $200 and $1,000, the penalties increase to a maximum of one year in prison and a $2,000 fine. The bill continues to escalate penalties for higher amounts, with serious felonies for amounts exceeding $100,000, which could result in up to 20 years of imprisonment. The bill is set to take effect 90 days after being enacted into law.

Statutes affected:
House Introduced Bill: 408.485