Michigan Wage Payment Laws
- Frequency of wage payments
- Manner of wage payments
- Direct deposit
- Payment upon separation from employment
- Wage in dispute
- Deductions from wages
- Uniforms, tools, and other equipment necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of wage reduction
- Statement of wages (pay stubs)
- Record keeping requirements
- Notice requirements
Frequency of Wage Payments
An employer may pay employees one (1) time per month, two (2) times per month, every two (2) weeks, every week, or more frequently. An employer 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 fifteen (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 fourteen (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.
Manner of Wage Payments
An employer may pay employees by:
- check payable on presentation at a financial institution or other established place of business without fee or deduction,
- 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
- 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).
An employer can pay employees by direct deposit, but must have an employee’s written consent to do so. Michigan Laws 408.476
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.
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,
- 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,
- 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.
Overpayment of Wages
An employer may deduct an overpayment of wages from an employee’s later wages without the employees consent only if the following requirements are met:
- The deduction must occur within 6 months of the overpayment;
- The overpayment must have resulted from a mathematical miscalculation, typographical error, clerical error, or a misprint;
- The employee must be notified of the the reasons for the deduction at least one (1) pay period before the deduction is made;
- The deduction can not be greater than 15% of the gross wages earned in the pay period in which the deduction is made;
- The deduction is made after all other required and employee-authorized deductions are made; and
- The deduction cannot reduce the employee’s effective wage rate below Michigan’s minimum wage rate.
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
Pre-hire Medical, Physical, or Drug Tests
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.
Notice of Wage Reduction
An employer must inform employees of any wage deduction before the wage deduction goes into effect. Michigan Dept. of Employment, Security & Workplace Safety: Wage & Hour Div. FAQ
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.
Record Keeping Requirements
An employer must maintain, for at least three (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 ten (10) or more employees who have identical fringe benefits, one (1) central itemization or listing may be kept for each group, providing the record identifies to which group each employee belongs).
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.