SENATE BILL No. 328

 

 

April 25, 2017, Introduced by Senators JOHNSON, WARREN, KNEZEK, HERTEL, ANANICH, HOPGOOD, GREGORY, YOUNG and BIEDA and referred to the Committee on Government Operations.

 

 

     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 2015 PA 15.

 

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,

 

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. However, an employer

 

that is a public body, as defined in section 11 of the Michigan

 

campaign finance act, 1976 PA 388, MCL 169.211, shall not deduct,

 

directly or indirectly, any amount from an employee's wages for a

 

contribution to a separate segregated fund established under

 

section 55 of the Michigan campaign finance act, 1976 PA 388, MCL

 

169.255, or a contribution or any payment to any committee

 

established under the federal election campaign act of 1971, Public

 

Law 92-225, 2 USC 431 to 455.52 USC 30101 to 30126.

 

     (2) Except as provided in this subsection and subsections (4)

 

and (5), a deduction for the benefit of the employer requires

 

written consent from the employee for each wage payment subject to

 

the deduction, and the cumulative amount of the deductions shall

 

must not reduce the gross wages paid to a rate less than the

 

minimum rate as prescribed in the workforce opportunity wage act,

 

2014 PA 138, MCL 408.411 to 408.424. 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 of 1986, 26 USC 501(c)(3).

 

     (3) Each deduction from the wages of an employee shall must be

 

substantiated in the records of the employer and shall must be

 

identified as pertaining to an individual employee. Prorating of

 

deductions between 2 or more employees is not permitted.

 

     (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).

 

     (ii) The minimum rate as prescribed by the fair labor

 

standards act of 1938, 29 USC 201 to 219.

 

     (5) If an employer pays any amount of the employee's debt

 

under a default judgment entered under section 4012(9) or (10) of

 

the revised judicature act of 1961, 1961 PA 236, MCL 600.4012, the

 

employer may deduct that amount 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 employer provides the employee with a written

 

explanation of the deduction at least 1 pay period or 10 business

 

days, whichever is greater, before the wage payment affected by the

 

deduction is made.

 

     (b) The deduction is not greater than 15% of the gross wages

 

earned in the pay period in which the deduction is made.

 

     (c) 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.

 

     (d) 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).

 

     (ii) The minimum rate as prescribed by the fair labor

 

standards act of 1938, 29 USC 201 to 219.

 

     (6) An employee who believes his or her employer has violated

 

subsection (4) or (5) may file a complaint with the department


within 12 months after the date of the alleged violation.

 

     (7) 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.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.