Michigan House Bill HB5734

Michigan 2023-2024 Regular Session

• Introduced: 5/16/24
• Refer: 5/16/24

Caption

Labor: benefits; certain types of accrued leave; require an employer to pay to an employee when employment is terminated. Amends secs. 1 & 5 of 1978 PA 390 (MCL 408.471 & 408.475).

Impact

If passed, this legislation would modify sections of the Michigan Public Act 390 of 1978, which currently governs how and when employees receive their wages and benefits upon leaving employment. The bill designates that all wages earned must be paid ‘as soon as possible’ upon an employee's separation, with specific stipulations detailing that employers must pay all wages to employees engaged in the hand harvesting of crops within three days of their termination. This adjustment promises to facilitate financial security for workers and is intended to eliminate delays in payment that could occur after employment ends.

Summary

House Bill 5734 aims to amend existing laws governing the payment of wages and fringe benefits to employees in the state of Michigan. Specifically, the bill seeks to adjust the regulations around the timing of wage payments upon an employee's termination, either voluntary or involuntary. Notably, the proposed amendments strengthen employees' rights to receive their earned wages in a more timely manner, detailing clear expectations for employers on when wages must be paid. The changes signify a considerable shift to enhance labor protections within the state.

Contention

While the bill is poised to bolster protections for employees, it may face opposition from certain business groups concerned about the potential implications of tighter wage payment regulations. Critics may argue that the new requirements could impose additional administrative burdens on employers, particularly small businesses. Discussions in legislative committees around this bill could bring forth various opinions, emphasizing the balance between protecting employee rights and addressing the operational challenges faced by employers.