Michigan Wage Payment Laws

---

Frequency of Wage Payments

Unless discussed below, an employer must pay employees regularly twice per month. An employer paying employees twice per month 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.

An employer may pay employees regularly either weekly or biweekly is the following conditions are met:

• wages are paid on the established regularly recurring payday, and
• the payday occurs on or before the 14th day following the end of the work period in which the wages are earned.

Employers may pay employees monthly if they have regularly scheduled paydays and the employer pays employees all wages earned within fifteen (15) days after the end of the monthly pay period.

Employers must pay an employee engaged in any phase of hand harvesting of crops on or before the second day following the workweek unless the employee has agreed in writing to be paid by at different regular pay periods.

Employers are in compliance with Michigan labor law regarding overtime earnings earned during the month of December that would be paid after December 16 if:

• employees receive all their wages, except overtime, for the month of December on or before the employees’ regularly scheduled payday
• all overtime wages earned during the month of December are paid on or before the next regularly scheduled payday following the payday in which the overtime would otherwise be paid.

Employers may pay employees more frequently than discussed above if otherwise permitted by the rules.

MI Statute 408.472

---

Manner of Wage Payments

An employer may pay employees by:

• cash,
• 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

Employers may not deposit an employee’s wages in a bank, credit union, or saving and loan association with out the voluntary written consent of the employees without intimidation, coercion, or fear of discharge or reprisal.

MI Statute 408.476

---

Direct Deposit

Employers can pay employees by direct deposit, but must have an employee’s written consent to do so. Employers cannot require employees to pay any fees or costs associated with the direct deposit.

Employers may required employees to receive wages by direct deposit if the employers:

• provide a written form to employees that allows the employees the option to receive wages by direct deposit
• provide a statement indicating that the employee failed to return the form within 30 days with the account information necessary to implement direct deposit will be presumed to indicate consent to receiving wages through a payroll debit card.

MI Statute 408.476

---

Payroll Card

Employers can pay employees by payroll card if the following standards are met:

• employees must be able to make at least 1 withdrawal or transfer without charge each pay period, but not more frequently than once per week, for any amount the employee elects up to the balance accessible through the card
• employers cannot require employees to pay any fees or costs associated with the payroll card
• employers cannot change fees or terms of service unless the employee has received a written notice at least 21 days in advance of the date that the changes take effect identifying the changes
• there must be a method for the employee to make an unlimited number of balance inquiries without charge, either electronically or by telephone
• the payroll card cannot be linked to any form of credit, including a loan against future pay or a cash advance on future pay
• employer must provide employees with written disclosures of all of the following concerning the payroll debit card:
  • The terms and conditions for use, including an itemized list of any and all fees.
  • The methods for accessing wages without charge.
  • A statement that, if the payroll debit card is used outside of the specified network of automatic teller machines, both the payroll card issuer and the operator of the automatic teller machine may impose charges.
  • The methods to obtain free balance inquiries.
  • The employee’s right to elect to change the method of receiving wages at any time.
  • That the payroll debit card does not provide access to a savings or checking account.

Employers may required employees to receive wages by payroll card if the employers:

• they provide a written form to employees that allows the employees the option to receive wages by direct deposit or payroll card, and
• provide a statement indicating that the employee failed to return the form within 30 days with the account information necessary to implement direct deposit will be presumed to indicate consent to receiving wages through a payroll debit card.

Payroll card may also be referred to as a payroll debit card and paycard.

MI Statute 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 (1) working day. MI Statute 408.475; MI Regs. 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 (1) working day. MI Statute 408.475; MI Regs. 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. MI Statute 408.475; MI Regs. 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.

Overpayment of Wages

An employer may deduct an overpayment from an employee’s pay check without written consent, if:

• the employer recovers the overpayment within six (6) months of making the overpayment,
• 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.

MI Statute 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. MI Statute 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. MI Dept. of Labor and Economic Opportunity – Wage & Hour 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.

MI Statute 408:479

---

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).

MI Statute 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.

---