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Payment upon Separation from Employment
Employees who are fired, discharged, terminated, or laid off
When an employer discharges or lays off an employee, the employer must pay the
employee all wages due by the regularly scheduled payday for the period in which the
termination occurs, except for employees engaged in hand harvesting who must be paid
within one working day. Michigan Laws 408.475; Mich. Admin. Rules 408.9007
Employees who quit or resign
When an employee quits, the employer must pay the employee all wages due by the
regularly scheduled payday for the period in which the termination occurs, except for
employees engaged in hand harvesting who must be paid within one working day.
Michigan Laws 408.475; Mich. Admin. Rules 408.9007
Employees who are suspended or resigns due to a labor dispute (strike)
Michigan does not have a law specifically addressing the payment of wages to an
employee who leaves employment due to a labor dispute, however, to ensure compliance
with known laws, an employer should pay employee all wages due by the regularly
scheduled payday for the period in which the termination occurs. Michigan Laws 408.475;
Mich. Admin. Rules 408.9007
Wages in Dispute
Michigan does not have any laws requiring an employer to pay an employee wages
conceded to be due when involved in a wage dispute with the employee.
Frequency of Wage Payments
An employer may pay employees once per month, twice per month, every two weeks, once
per week, or more frequently. An must designate regular paydays.
If an employer pay wages twice per month (semi-monthly), it must pay employees for all
wages earned during the first 15 days of a month on or before the first day of the following
month. For wages earned from the 16th to last day of the month, an employer must pay an
employee on or before the 15th day of the following month.
If an employer pays an employee either once per week or once every two weeks, an
employer must pay wages within 14 days of the end of the pay period in which the wages
were earned.
If an employer pays wages monthly, it must pay employees not later than the first day of the
month following the month in which the wages were earned.
Michigan Laws 408.472
Manner of Payment
An employer may pay employees:
- by cash,
- by check payable on presentation at a financial institution or other established place of
business without fee or deduction,
- by direct deposit to an employee's account at a financial institution, so long as the
employee has consented in writing to the direct deposit, and
- by stored-value debit card, payrolls card, or paycard (unlike direct deposit, an employer
can pay by debit card, payrolls card, or paycard without the consent of employees).
Michigan Laws 408.476
Direct Deposit
An employer can pay employees by direct deposit, but must have an employee's written
consent to do so. Michigan Laws 408.476
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Your Employment and Labor Law Resource
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Deductions from Wages
An employee must consent in writing each time an employer makes a deduction from his
or her wages if the deduction is for the benefit of the employer. These type of deductions
include:
- cash shortages
- breakage, damage, or loss of the employer's property
- required uniforms
- required tools
- other items necessary for employment
Although an employer can deduct the above-listed item with the written consent of an
employee, the employer cannot coerce or threaten the employee with discharge to obtain
the written consent.
An employer cannot withhold or deduct wages from an employees pay check, unless:
- required or permitted to do so by law,
- required or permitted by a collective bargaining agreement, or
- the employee has consented in writing, without coercion, to the deduction.
An employer may deduct an overpayment from an employee's pay check without written
consent, if:
- 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,
- the miscalculation, error, or misprint was made by the employer, the employee, or a
representative of the employer or employee,
- he 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,
- the deduction is not greater than 15% of the gross wages earned in the pay period in
which the deduction is made,
- 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, and
- 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 state minimum wage rate or
the federal minimum rate.
Michigan Laws 408:477
Uniforms, Tools, and Other Equipment Necessary for Employment
There is no law that prohibits an employer from requiring an employee to pay for a uniform,
tools, or other necessary times. An employer must obtain an employee's written consent to
deduct the costs from the employee's wages. Michigan Laws 408:477
Medical or Physical Exams, including Drug Tests, Required for Employment
Michigan does not have any laws prohibiting an employer from requiring an applicant or
employee to pay the cost of a medical examination or the cost of furnishing any records
required by the employer as a condition of employment.
Statement of Wages (Pay Stub)
An employer must furnish each employee at the time of payment of wages a statement of:
- the hours worked by the employee, unless employed in a bona fide executive,
administrative, or professional capacity,
- the gross wages paid,
- identification of the pay period for which payment is being made, and
- a separate itemization of deductions.
Michigan Law 408:479
Record Keeping Requirements
An employer must maintain, for at least 3 years, a record for each employee which
indicates:
- the employee's name, address, birth date, occupation or classification in which employed,
- total basic rate of pay,
- total hours worked in each pay period, unless the employee is employed in a bona fide
executive, administrative, or professional capacity,
- total wages paid each pay period, and
- a separate itemization of deductions and a listing or itemization of fringe benefits (if an
employer has a group of 10 or more employees who have identical fringe benefits, 1
central itemization or listing may be kept for each group, providing the record identifies what
group each employee belongs to).
Michigan Law 408:479
Notice Requirements
Michigan does not have any laws requiring employers to provide employees, whether at
hire or at any other time, of notice of wage rates, dates of pay, employment policies, fringe
benefits, or other terms and conditions of employment.
Wage Payment Laws for Private Sector Employers
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Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- Payment upon Separation from Employment
- Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements