September 28, 2011, Introduced by Reps. Poleski, Shaughnessy, Shirkey, McMillin, Agema, Lyons, Kowall, Price and Haines and referred to the Committee on Oversight, Reform, and Ethics.
A bill to amend 1978 PA 390, entitled
"An act to regulate the time and manner of payment of wages and
fringe benefits to employees; to prescribe rights and
responsibilities of employers and employees, and the powers and
duties of the department of labor; to require keeping of records;
to provide for settlement of disputes regarding wages and fringe
benefits; to prohibit certain practices by employers; to prescribe
penalties and remedies; and to repeal certain acts and parts of
acts,"
by amending section 7 (MCL 408.477), as amended by 1995 PA 278.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7. (1) Except for those deductions required or expressly
permitted by law or by a collective bargaining agreement, an
employer shall not deduct from the wages of an employee, directly
or indirectly, any amount including an employee contribution to a
separate segregated fund established by a corporation or labor
organization under section 55 of the Michigan campaign finance act,
Act
No. 388 of the Public Acts of 1976, being section 169.255 of
the
Michigan Compiled Laws 1976 PA 388, MCL 169.255, without
the
full, free, and written consent of the employee, obtained without
intimidation or fear of discharge for refusal to permit the
deduction.
(2) A deduction permitted by a collective bargaining agreement
for labor organization membership requires annual written consent
by the employee, which consent may be revoked by the employee at
any time. This subsection shall not be construed to impair the
labor organization's ability to bargain for the right to collect an
agency fee or fair share contribution from a nonmember, as
permitted by law.
(3) (2)
Except as otherwise provided in this subsection and
subsection
(4) section, a deduction for the benefit of the employer
requires written consent from the employee for each wage payment
subject
to the deduction. , and the The cumulative amount of the
deductions shall not reduce the gross wages paid to a rate less
than
minimum rate as defined in the minimum wage law of 1964, Act
No.
154 of the Public Acts of 1964, being sections 408.381 to
408.398
of the Michigan Compiled Laws 1964 PA 154, MCL 408.381 to
408.398. A nonprofit organization shall obtain a written consent
from an employee for deductions to that nonprofit organization that
qualify as charitable contributions under federal law. However,
this subsection does not require the nonprofit organization to
obtain from an employee a separate written consent for each
subsequent paycheck from which deductions that qualify as
charitable contributions that benefit the employer are made. An
employee at any time may rescind in writing his or her
authorization to have charitable contributions deducted from his or
her paycheck. As used in this subsection, "nonprofit organization"
means an organization that is exempt from taxation under section
501(c)(3) of the internal revenue code, 26 USC 501.
(4) (3)
Each deduction from the wages of an
employee shall be
substantiated in the records of the employer and shall be
identified as pertaining to an individual employee. Prorating of
deductions between 2 or more employees is not permitted.
(5) (4)
Within 6 months after making an
overpayment of wages
or fringe benefits that are paid directly to an employee, an
employer may deduct the overpayment from the employee's regularly
scheduled wage payment without the written consent of the employee
if all of the following conditions are met:
(a) The overpayment resulted from a mathematical
miscalculation, typographical error, clerical error, or misprint in
the processing of the employee's regularly scheduled wages or
fringe benefits.
(b) The miscalculation, error, or misprint described in
subdivision (a) was made by the employer, the employee, or a
representative of the employer or employee.
(c) The employer provides the employee with a written
explanation of the deduction at least 1 pay period before the wage
payment affected by the deduction is made.
(d) The deduction is not greater than 15% of the gross wages
earned in the pay period in which the deduction is made.
(e) The deduction is made after the employer has made all
deductions expressly permitted or required by law or a collective
bargaining agreement, and after any employee-authorized deduction.
(f) The deduction does not reduce the regularly scheduled
gross wages otherwise due the employee to a rate that is less than
the greater of either of the following:
(i) The minimum rate as prescribed by subsection (2).(3).
(ii) The minimum rate as prescribed by the fair labor standards
act
of 1938, chapter 676, 52 Stat. 1060, 29 U.S.C. USC
201 to 216
and 217 to 219.
(6) (5)
An employee who believes his or her
employer has
violated
subsection (4) (5) may file a complaint with the
department within 12 months after the date of the alleged
violation.
(7) (6)
As used in this section,
"employer" means an
individual, sole proprietorship, partnership, association, or
corporation, public or private, this state or an agency of this
state, a city, county, village, township, school district, or
intermediate school district, an institution of higher education,
or an individual acting directly or indirectly in the interest of
an employer who employs 1 or more individuals.