Michigan Wage and Hour Laws Protecting Wages in the Workplace Michigan Department of Licensing and Regulatory Affairs Wage and Hour Division Presented by: Jennifer Fields, Wage and Hour Division Manager

Who Are We? The Wage and Hour Division is located within the Department of Licensing and Regulatory Affairs. With a staff of 29 people, the Wage and Hour Division administers, regulates, and educates on 3 Michigan statutes:

The Wage and Hour Program Public Act 390, The Payment of Wages & Fringe Benefits Act Public Act 138, The Michigan Minimum Wage & Overtime Law effective May 27, 2014 (Workforce Opportunity Wage Act) Public Act 166, The Prevailing Wages on State Projects Act 62, Human Trafficing Notification Act

Act 390 (continued) Applies to most Michigan employees 80% of all claims received are for this Act Regulates the payment of hourly, salary, piece rate, and commission wages on a regular basis: weekly, biweekly, semimonthly, or monthly Governs payment of certain fringe benefits- vacation, sick time, holiday pay, authorized expenses and bonuses as specified in written contracts or written policies

Act 390 (continued) Prohibits deductions unless authorized by law, collective bargaining agreement, or employee’s written consent Deductions to recoup overpayments are allowed in certain circumstances Requires wages be paid on the regular payday whether an employee quits or is terminated Hand harvesters must be paid within 3 days if they quit or 1 day if they are terminated

Act 390 (continued) Allows payment of wages via U.S. currency, negotiable check or money order, and when certain conditions are met, direct deposit or payroll debit card. Entitles the employee 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.

Act 390 (continued) Mandates an employee receive a retainable pay statement at the time of payment indicating hours worked, gross wages paid, an itemization of deductions, and the period earned Requires employers maintain records for 3 years which indicate employee’s name, address, birth date, classification, pay rate, total hours worked each pay period, total wages paid & an itemization of fringe benefits Provides protection for employees who file a claim or exercise a right protected by Act 390

Most Common Claims Under Act 390 Must be filed by employee within 12 months of date of alleged violation Last Paycheck Deductions Not paid for all time worked Fringe Benefits Retainable check stub Rate of pay dispute

Act 138 The Michigan Minimum Wage & Overtime Law Applies to: Employers who employ 2 or more persons 16 years old and older Employers who are not covered by the federal Fair Labor Standard Act (FLSA) Individuals of employers covered by the FLSA when state requirement is stricter than federal requirement Posters are available online in English, Spanish and Arabic $8.90 on January 1, 2017 $9.25 on January 1, 2018

Act 138 (continued) Permits a subminimum wage for employees 16 and 17 years of age equal to 85% of the minimum wage rate. Federal minimum wage is $7.25/hour . Employers covered by both the Michigan Minimum Wage law and the Fair Labor Standards Act should pay the higher applicable minimum wage rate. Allows tipped employees, such as wait staff, to be paid $3.38 an hour effective January 1, 2017, if they report in writing receiving tips equal to minimum wage.

Act 138 (continued) Permits a $4.25/hour training wage during the first 90 days of employment for new hires 16-19 years of age Necessitates an overtime rate, 1½ times the regular rate of pay, for hours worked in excess of 40 in a 7-day workweek by nonexempt employees Requires 3 year retention of daily time records, including starting & ending times, computed to the nearest 10th of an hour (6 minutes) or finer measure Dictates worksite posting of the General Requirements Poster

Most Common Act 138 claims 3 year statue of limitations for employee to file claim Not paid the applicable minimum wage Tipped employee not filling out a tip statement. Employer not maintaining time records Overtime claims

Entities required to post Act 62 effective July 4, 2016 Rest Stop and Welcome Centers Bus and rail transportation Public Airports Adult Entertainment establishments Any entity that has been found by a court to constitute a public nuisance due to acts of prostitution or human trafficking

Act 62 required poster Be in English and Spanish, any other language deemed appropriate by the Department Be available for free on Wage and Hour Division website A civil penalty may be accessed if required entity does not display poster Goal is to make sure poster is displayed where required

Act 62 Human Trafficking Notification Act “If you or someone you know is being forced to engage in any activity and cannot leave, whether the activity is commercial sex, housework, farm work, or any other activity, please contact the National Human Trafficking Resource Center hotline at 1-888-373-7888 or text 233733 to access help and services. The victims of human trafficking are protected under U.S. laws and the laws of this state.”.

Claim Filing & Investigations Employees may file a claim for investigation under the 4 Acts. Claim forms may be obtained online or by calling Wage and Hour. Claims filed under Acts 390 & 138 may also be done electronically online at www.michigan.gov/wagehour. The Wage and Hour Program receives nearly 5,000 claims annually The program collects over 2.2 million dollars per year on behalf of Michigan workers Our goal is to resolve 75% of claims within 90 days and 75% of them informally

The Investigation Process The complaint is received and assigned to an investigator for review. The employer is notified of the complaint filing and is allowed to respond in writing with payment for the amount claimed or any portion they think is owed to the complainant and/or a position statement including documents and records to support their position and partial payment.

The Investigation Process (continued) The investigator reviews and audits the documents and records submitted by the employer and complainant. In the absence of records and documents from the employer, the investigator may do an on-site visit to review and obtain a copy of the records or a Notice to Produce Records is mailed to the employer. At the conclusion of the records review and audit, the parties are notified of the findings.

The Investigation Process (continued) If a violation and/or money is found due to the complainant, the employer is given an opportunity to voluntarily submit payment prior to a formal order of payment and penalties are issued. Under Act 390, if an order is issued, both parties have the right to appeal the order and present their case before an administrative law judge (ALJ).

The Investigation Process (continued) If the determination order is not paid or the Administrative Law Judge upholds or amends the determination and orders money to be paid, but the employer does not pay, then the case will be referred to the Michigan Attorney General’s Office for enforcement of the order and collection of the amount found due plus the penalties.

Michigan Wage and Hour Program Contact Information Mailing: 530 West Allegan Street P.O. Box 30476 Lansing, MI 48909-7976 Telephone: (517) 284-7800 Toll Free (855)-4MI-Wage Website: www.michigan.gov/wagehour

Youth Employment Standards Act Public Act 90 Telephone: (517) 335-6041 Michigan Department of Education Contact Information Youth Employment Standards Act Public Act 90 Telephone: (517) 335-6041

Wage and Hour Program Manager Jennifer Fields Wage and Hour Program Manager 517-284-7802 www.michigan.gov/wagehour fieldsj@Michigan.gov