February 16, 2010, Introduced by Reps. Scripps, Robert Jones, Lahti, Neumann, Roy Schmidt, Kowall, Byrum, Valentine, Kandrevas, Calley, Geiss, Mayes, Warren, Rogers, Marleau and Nathan and referred to the Committee on Banking and Financial Services.
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), as amended by 2004 PA 534.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6. (1) An employer or agent of an employer may pay wages
to an employee by any of the following methods:
(a) Payment in United States currency.
(b) Payment by a negotiable check or draft payable on
presentation at a financial institution or other established place
of business without discount in United States currency.
(c) Direct deposit or electronic transfer to the employee's
account at a financial institution.
(d)
Issuance of Issuing a payroll debit card to the employee
that allows the employee to make at least 1 withdrawal or transfer
per pay period without charge for any amount the employee elects up
to the balance accessible through the card. As used in this
section, "payroll debit card" means a stored-value debit card that
provides an employee access to his or her wages, for withdrawal or
transfer by the employee, through a network of automatic teller
machines. The term includes cards commonly known as payroll debit
cards, payroll cards, and paycards.
(2) Except as provided in section 283a of the management and
budget act, 1984 PA 431, MCL 18.1283a, or in subsection (4), an
employer or agent of an employer shall not deposit an employee's
wages in a bank, credit union, or savings and loan association
without the full, free, and written consent of the employee,
obtained without intimidation, coercion, or fear of discharge or
reprisal for refusal to permit the deposit.
(3)
An Except as provided in
subsection (4), an employer or
agent of an employer shall not issue a payroll debit card to an
employee under subsection (1)(d) without the full, free, and
written consent of the employee, obtained without intimidation,
coercion, or fear of discharge or reprisal for refusal to accept
the payroll debit card. However, an employer paying wages by
payroll debit card to 1 or more of its employees as of January 1,
2005 may pay wages to any of its employees by payroll debit card
without obtaining the consent described in this subsection.
(4) An employer or agent of an employer may require employees
to receive wages by either direct deposit or a payroll debit card
if the employer has done all of the following:
(a) Given the employee a written form that allows the employee
the option to receive wages either by direct deposit to the
employee's account at a financial institution or through a payroll
debit card.
(b) Included a statement on the written form indicating that
failure to return the form within 3 days with the account
information necessary to implement direct deposit will be presumed
to indicate consent to receiving wages through a payroll debit
card.
(5) (4)
An employer shall not require an
employee to pay any
fees or costs incurred by the employer in connection with paying
wages
or establishing a process for paying wages under by a method
described in subsection (1)(c) or (d).