SENATE BILL No. 851

 

 

December 2, 2003, Introduced by Senators ALLEN and BIRKHOLZ and referred to the Committee on Local, Urban and State Affairs.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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.  An employer that elects to             

                                                                                

9   pay wages under this subdivision shall provide its current                  

                                                                                

10  employees with notice of election and a period of at least 6                

                                                                                

11  weeks for its current employees to establish an account at a                

                                                                                

12  financial institution to accept the deposit or transfer of wages.