Michigan Deductions from Pay laws & HR compliance analysis

Michigan Deductions from Pay: What you need to know

An employer may make a deduction from an employee's wages only if the deduction is required by court order; by state, local, or federal law; or if the employee expressly authorizes the deduction in writing (MI Stat. Sec. 408.477(1)).
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Employers may take deductions from employees' wages that are required or expressly permitted by law (federal, state, or local employment taxes; child support payments), or by a collective bargaining agreement (union dues), without first obtaining written authorization from the employee (MI Stat. Sec. 408.477(1)).
Deductions for the benefit of the employee. Deductions for the employee's benefit may only be made with the express written consent of the employee. These deductions include contributions to health insurance plans, 401(k) plans, health savings accounts, and other deductions that are made for the employee's benefit.
Deductions for the benefit of the employer. If a deduction is taken for the benefit of the employer, the employer must first obtain the employee's written consent for each wage payment subject to the deduction, and the deduction must not reduce the employee's gross wages to a rate less than the minimum wage (MI Stat. Sec. 408.477(2)).
Within 6 months after making an overpayment of wages or fringe benefits directly to an employee, the employer may deduct the overpayment from the employee's regularly scheduled wage payments without the employee's written consent if all the following conditions are met (MI Stat. Sec. 408.477(4)):
• The overpayment resulted from a mathematical miscalculation, typographical error, clerical error, or misprint in the processing of the employee's ...

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