New Michigan Law – Employers May Deduct from Wages Without Consent if Paid Employee’s Debt

Law Effective September 30, 2015

Under a new law effective September 30, 2015, if an employer pays any amount of an employee’s debt under a default judgment (entered under the Revised Judicature Act, §§ 9–10), the employer may deduct that amount from the employee’s regularly scheduled wage payment without the written consent of the employee if all of the following conditions are met:

  • The employer provides the employee with a written explanation of the deduction at least one 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.
  • 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 the applicable state or federal minimum wage.

Click here to read the text of the new law

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.