As a small business entrepreneur in Michigan, you must be aware of the employment laws that will affect you and your business. A key change for business owners, especially small business owners, was the increase in the minimum wage.

Michigan’s Workforce Opportunity Wage Act

In January 2016, Michigan’s minimum wage increased from $8.15 per hour to $8.50 per hour. It is expected to increase again in 2017 to $8.90, and in 2018 to $9.25. Though these increases can possibly affect a small business owner’s initial bottom line, the increase of money for low-wage workers can potentially evoke stimulation to the economy, which can be a benefit to increasing local business. How should these wages be paid out to your employee?

Payment of Wages and Fringe Benefits Act, Public Act 390 of 1978

The Payment of Wages and Fringe Benefits Act, as amended, regulates the payment of hourly wages, salaries, commissions, certain fringe benefits (vacation pay, sick pay, etc.) as specified in written contracts or written policies. This law requires that employers provide written policies and agreements providing a schedule on how wages and benefits are paid to their employees, and employees must receive pay statements of their earnings. It also requires that employees receive compensation for fringe benefits earned, according to the written policy or contract, such as vacation and/or sick pay, time off due to an injury, jury duty, etc. This law also prohibits unauthorized deductions from pay that is not required by law, or authorized through a written agreement or consent from employee. It is also important to know the disability benefits procedures.

Worker’s Disability Compensation Act of 1969

This law provides certain procedures for the resolution of claims and a system for the transfer of funds benefits for persons suffering a personal injury. There are limitations on obtaining benefits, certain fees, remedies and penalties to keep in mind. The Worker’s Disability Compensation Act has extensive guidelines that should be watched closely. Another crucial change in Michigan’s employment laws was the implementation of the Freedom to Work Act.

Freedom to Work Act (FTW)

The Freedom to Work Act took effect in 2013, which prohibits union-security agreements. This law prevents employers from excluding non-union workers, or requiring existing employees to join a union or pay union dues as a requirement to obtain or continue employment. For small business owners, this law is essential in how you hire and maintain employees. It expands your hiring pool of candidates, as now you’re able to hire and maintain non-union workers.



This article was written by T. Marie Adams for CBS Small Business Pulse.


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