Michigan Payroll Rules

Frequency of Payments

You must pay your employees at least monthly. You must designate regular paydays.

If you pay your employees semimonthly, you must pay them the wages earned during the first 15 days of the month on or before the first day of the following month. You must pay your employees for wages earned between the 16^th and the last day of the month on or before the 15^th of the following month.

If you pay your employees weekly or biweekly, you must pay them within 14 days after the end of the pay period.

If you pay your employees monthly, you must pay them on or before the first day of the month following the month in which the wages were earned.

Manner of Payments

You may pay your employees by cash, check, stored-value debit card, payroll card, or paycard.

With written consent, you may pay your employees via direct deposit.

Payment Upon Separation

If an employee leaves your company for any reason, you must pay them by the next regularly scheduled payday. However, if the employee was involved in hand harvesting, then you must pay them within one (1) working day.

Deductions

You may only make a deduction from an employee’s paycheck if

• required or permitted to do so by law,
• required or permitted to do by a collective bargaining agreement, or
• the employee has consented in writing.

You may make the following deductions from an employee’s paycheck, if you have written consent each time:

• cash shortages;
• breakage, damage, or loss of the employer’s property;
• required uniforms;
• required tools; or
• other necessary items.

You can deduct an overpayment from an employee’s paycheck without written consent, if

• the overpayment was caused by a mathematical miscalculation, typographical error, clerical error, or misprint while processing the employee’s regular paycheck or fringe benefits;
• the miscalculation, error, or misprint was made by the employer, employee, or a representative of the employer or employee;
• you provide the employee with a written explanation of the deduction at least one (1) pay period in advance;
• the deduction occurs within six (6) months of the overpayment;
• the deduction is 15% or less of the employee’s gross wages earned in the pay period when the deduction will be made;
• the deduction is made after all required deductions and employee-authorized deductions have been made; and
• the deduction does not reduce the employee’s gross wages to a rate that is less than the state or federal minimum wage (whichever is greater).

Uniforms & Other Required Equipment or Tools

Michigan does not have any laws about whether you can require an employee to purchase a uniform or equipment necessary for them to do their job.

Pre-Hire Medical, Physical, & Drug Tests

Michigan does not have any laws about whether you can require employees to pay for pre-hire exams.

Notice of Wage Reduction

You must inform employees of a wage reduction before the reduction takes effect.

Paystubs

On each payday, you must give each employee a paystub. The paystub must include the following:

• hours worked,
• gross wages paid,
• the pay period for which the payment is being made, and
• an itemization of deductions.

Recordkeeping

For each employee, you must keep the following records for at least three (3) years:

• name, address, birthdate, occupation;
• total basic rate of pay;
• total hours worked each pay period;
• total wages paid each pay period; and
• an itemization of deductions and fringe benefits.

Notices

Michigan does not require you to post payroll-related notices.