Michigan House Bill HB4405

Michigan 2023-2024 Regular Session

• Introduced: 4/12/23
• Refer: 4/12/23
• Report Pass: 12/5/24

Caption

Labor: fair employment practices; deductions from wages without written consent of employee; revise notice period for certain deductions related to garnishment. Amends sec. 7 of 1978 PA 390 (MCL 408.477).

Impact

If enacted, HB 4405 would significantly impact the way employers handle wage deductions across Michigan. It establishes a requirement for clearer reporting and legitimacy of any deductions made from wages, thereby reinforcing employees' rights. The bill's provision to prevent deductions without explicit consent is likely to protect employees from wrongful deductions that could potentially affect their financial stability. This could lead to enhanced trust between employees and employers, as employees would have a greater say over their earned wages.

Summary

House Bill 4405 aims to amend the existing wage regulation framework in Michigan, specifically focusing on the conditions under which employers may deduct amounts from employees' wages. The bill emphasizes that deductions cannot be made without the full, free, and written consent of the employee. This provision seeks to enhance employee protections, ensuring that consent is granted without any intimidation or threat of discharge. It also lays down specific guidelines for deductions related to charitable contributions and requires that any deduction must not bring the employee's wages below the legally established minimum wage.

Contention

Notably, there may be contention surrounding the bill regarding the practical implications of requiring written consent for all deductions. Employers may argue that this adds administrative burdens and could complicate operational practices. Furthermore, those in favor of a more flexible approach may criticize the bill for being overly restrictive. Nevertheless, proponents believe that ensuring consent for wage deductions is a critical step in safeguarding worker rights and promoting fairness within employment practices. Stakeholders from both sides of the issue are likely to engage in discussions about finding a balance between facilitating business operations and protecting employee interests.