Michigan’s wage payment law seems like it should be rather simple, but it’s perhaps the most complicated employment law in the state. Full of traps for the unwary, the law can spell big trouble for even innocent mistakes.
The law covers all Michigan private employers, even those with only one employee, and requires at least two paydays per calendar month unless the employer specifically sets a more frequent pay period. If a payday falls on a nonbusiness day, you must dispense payroll on the last business day prior to the regularly scheduled payday.
The law prohibits you from forcing employees to purchase items from your organization or another employer-sponsored entity. You may not deduct the cost of tools or employer-owned items that an employee loses or damages unless he’s signed a specific agreement to make such payments.
The Wage and Act also covers payment of final wages upon termination, whether it’s voluntary or involuntary. You must pay all wages, and commissions to a departing employee as soon as you can determine those amounts. To ensure all amounts are correct, you’re permitted to exercise due diligence.
Excerpted from Michigan’s 10 Most Critical Employment Laws, a special bonus report available to subscribers of HR Specialist: Michigan Employment Law.
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