The bill amends the 1978 PA 390, which regulates the payment of wages and fringe benefits to employees, by updating definitions and adding new provisions. Key changes include redefining the "Department" to be the Department of Labor and Economic Opportunity, clarifying that "employee" does not include independent contractors, and introducing a new definition for "independent contractor." Additionally, the bill establishes a "wages and fringe benefits fund" to be administered by the department, which will be used to enforce the act. It also prohibits the misclassification of employees as independent contractors and places the burden of proof on the employer in such cases.

Furthermore, the bill enhances penalties for employers who violate wage and benefit regulations. It increases the annual penalty rate from 10% to 100% on unpaid wages and fringe benefits, and allows for exemplary damages of up to three times the amount owed if violations are flagrant or repeated. The bill also introduces a civil fine of up to $10,000 for violations and mandates that 50% of collected penalties be paid to affected employees. The director of the department and the attorney general are given authority to initiate civil actions to enforce compliance with the act.

Statutes affected:
House Introduced Bill: 408.471