Payment of Wages and Fringe Benefits Act

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November 3, 2017

The Payment of Wages and Fringe Benefits Act, Public Act 390 of 1978, 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. Also:

  • Requires that an employee receive wages earned on a regular basis: weekly, bi-weekly, semi-monthly or monthly.
  • Requires that an employee receive a retainable pay statement of wages indicating hours worked, gross wages paid, an itemization of deductions and the dates for which the wages are paid.
  • Requires that an employee receive compensation for fringe benefits earned according to a written contract or written policy such as payment for: a holiday, time off for sickness or injury, time off for vacation or personal reasons, bonuses or authorized expenses incurred during employment.
  • Prohibits deductions without authorization by law, a collective bargaining agreement, or written consent of an employee.
  • Requires that an employee receive wages in cash, check or money order. Employees may authorize the direct deposit of their wages into a bank or credit union.
  • Requires that an employee receive wages earned on the regular scheduled payday for the period in which the employee quits or is discharged.
  • Allows employers to deduct overpayments of wages or fringe benefits due to mathematical or typographical errors under special conditions.
  • Provides protection for employees who file a complaint or exercise a right protected by the Payment of Wages and Fringe Benefits Act.

WHD-9801 Act 390 Payment of Wages and Fringe Benefits Brochure

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