The Michigan State Legislature recently amended the Wage and Fringe Benefits Act with Act No. 170 to accommodate businesses that pay employees on a monthly, as opposed to weekly or bi-weekly basis. The amendment was approved by the governor on June 3, 2018, and takes effect 90 days after the date it is enacted into law.
Section 408.472 of the Payment of Wages and Fringe Benefits Act requires an employer to pay its employees on or before the first day of each calendar month for the wages earned by the employee during the first 15 days of the preceding calendar month. However, the law provides that an employer who has established a monthly payday will not be in violation of the law if it pays to its employees all wages earned during the preceding calendar month within 15 after the end of the monthly pay period.
This article was written by Ryan Hansen, Law Clerk
