SB-0851, As Passed Senate, June 30, 2004                                    

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   (2) An employer or agent of an employer shall not deposit                   

2   an employee's wages in a bank, credit union or savings and loan             

3   association without the full, free and written consent of the               

4   employee or prospective employee, obtained without intimidation,            

5   coercion or fear of discharge or reprisal for refusal to permit             

6   the deposit.

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

8   account at a financial institution.  All of the following apply             

9   if an employer pays wages under this subdivision:                           

10                                                                               (i) An employer that elects to pay wages under this                                 

11  subdivision shall provide its current employees with notice of              

12  that election and a period of at least 6 weeks for its current              

13  employees to establish an account at a financial institution to             

14  accept the deposit or transfer of wages.                                    

15      (ii) An employer may not pay wages to an employee under this                 

16  subdivision if the employee provides the employer a written                 

17  objection to payment by direct deposit or electronic transfer.              

18      (iii) An employer shall not require an employee to pay any                   

19  fees or costs incurred by the employer in connection with                   

20  establishing a direct deposit or electronic transfer process or             

21  paying wages under this subdivision.                                        

22      (iv) An employer that pays wages to an employee under this                   

23  subdivision shall provide the statement required under section              

24  9(2) in writing if requested by the employee.                               

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

26  used in this subdivision, "payroll debit card" means a                      

27  stored-value debit card that provides an employee access to his             

1   or her wages, for withdrawal or transfer by the employee, and               

2   accessible through a network of automatic teller machines, and              

3   includes cards commonly known as payroll debit cards, payroll               

4   cards, and paycards.  All of the following apply if an employer             

5   pays wages under this subdivision:                                          

6                                                                                (i) An employer that elects to pay wages under this                                 

7   subdivision shall provide its current employees with notice of              

8   that election.                                                              

9       (ii) An employer may not pay wages to an employee under this                 

10  subdivision if the employee provides the employer a written                 

11  objection to payment by issuance of a payroll debit card.                   

12      (iii) An employer shall not require an employee to pay any                   

13  fees or costs incurred by the employer in connection with                   

14  establishing a payroll debit card process or paying wages under             

15  this subdivision.                                                           

16  (iv) An employer that pays wages to an employee under this                   

17  subdivision shall provide the statement required under section              

18  9(2) in writing if requested by the employee.