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HB 4318

Labor: fair employment practices; penalty for wage and fringe benefit payment violations with the intent to defraud; increase. Amends sec. 15 of 1978 PA 390 (MCL 408.485).

2025-2026 Regular Session Introduced by Joey Andrews and 17 co-sponsors

Michigan bill increases penalties for employers who intentionally fail to pay workers wages or fringe benefits to strengthen wage theft enforcement.

bill electronically reproduced 04/16/2025
#labor:benefits #labor:fairemploymentpractices
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Bill Summary · HB 4318

Legislative bill overview

HB 4318 amends Michigan's wage and fringe benefit protection law by increasing penalties for employers who intentionally fail to pay wages or fringe benefits to workers. The bill modifies the existing penalty structure under the 1978 Payment of Wages and Fringe Benefits Act to impose stricter consequences for fraudulent non-payment violations.

Why is this important

Wage theft—intentional non-payment or underpayment of earned compensation—directly affects workers' ability to meet basic needs and has been documented as a widespread problem in certain industries. Increasing penalties creates stronger deterrents for employers to comply with wage laws and provides additional remedies for affected workers, particularly in vulnerable employment sectors.

Potential points of contention

  • Business compliance costs: Employers argue that increased penalties raise operational risk and compliance burden, potentially affecting smaller businesses with unintentional administrative errors
  • Penalty amount specificity: The bill's text is not provided, so the actual penalty increase amount is unknown—this could range from modest to substantial, affecting the severity of contention
  • Fraud definition threshold: Disagreement may exist over what constitutes "intent to defraud" versus negligence or bookkeeping mistakes, potentially affecting enforcement consistency

Compiled from official sources — confirm details with the bill’s official record.

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