SB-0851, As Passed Senate, December 9, 2004                                 

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 851

                                                                             A bill to amend 1978 PA 390, entitled                                             

"An act to regulate the time and manner of payment of wages and             

fringe benefits to employees; to prescribe rights and                       

responsibilities of employers and employees, and the powers and             

duties of the department of labor; to require keeping of records;           

to provide for settlement of disputes regarding wages and fringe            

benefits; to prohibit certain practices by employers; to                    

prescribe penalties and remedies; and to repeal certain acts and            

parts of acts,"                                                             

by amending section 6 (MCL 408.476).                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 6.  (1)  The payment of wages shall be paid An                        

2   employer or agent of an employer may pay wages to an employee by            

3   any of the following methods:                                               

4       (a) Payment in United States currency.  or

5   (b) Payment by a negotiable check or draft payable on                       

6   presentation at a  bank financial institution or other

7   established place of business without discount in United States

8   currency.                                                                   

1   (c) Direct deposit or electronic transfer to the employee's                 

2   account at a financial institution.                                         

3       (d) Issuance of a payroll debit card to the employee.  As                   

4   used in this section, "payroll debit card" means a stored-value             

5   debit card that provides an employee access to his or her wages,            

6   for withdrawal or transfer by the employee, through a network of            

7   automatic teller machines.  The term includes cards commonly                

8   known as payroll debit cards, payroll cards, and paycards.

9       (2)  An Except as provided in section 283a of the management               

10  and budget act, 1984 PA 431, MCL 18.1283a, an employer or agent             

11  of an employer shall not deposit an employee's wages in a bank,             

12  credit union, or savings and loan association without the full,             

13  free, and written consent of the employee,  or prospective                  

14  employee,  obtained without intimidation, coercion, or fear of              

15  discharge or reprisal for refusal to permit the deposit.                    

16  (3) An employer or agent of an employer shall not issue a                   

17  payroll debit card to an employee under subsection (1)(d) without           

18  the full, free, and written consent of the employee, obtained               

19  without intimidation, coercion, or fear of discharge or reprisal            

20  for refusal to accept the payroll debit card.  However, an                  

21  employer paying wages by payroll debit card to 1 or more of its             

22  employees as of January 1, 2005 may pay wages to any of its                 

23  employees by payroll debit card without obtaining the consent               

24  described in this subsection.                                               

25      (4) An employer shall not require an employee to pay any fees               

26  or costs incurred by the employer in connection with paying wages           

27  or establishing a process for paying wages under subsection                 

1   (1)(c) or (d).

2       Enacting section 1.  This amendatory act does not take                      

3   effect unless Senate Bill No. 850 of the 92nd Legislature is                

4   enacted into law.