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HB 4317

Labor: hours and wages; employer violations regarding the payment of wages and fringe benefits; increase sanctions for. Amends sec. 18 of 1978 PA 390 (MCL 408.488).

2025-2026 Regular Session Introduced by Joey Andrews and 16 co-sponsors

HB 4317 boosts penalties and costs for wage violations, raising unpaid wages penalties to 100% annually, exemplary damages to 3x, and civil fines to up to $10,000.

bill electronically reproduced 04/16/2025
#labor:benefits #labor:hoursandwages
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Bill Summary · HB 4317

Summary — HB 4317 (2025)

Status: House introduced bill (reproduced 04/16/2025); introduced Mar 11, 2025. Amends: 1978 PA 390, sec. 18 (MCL 408.488). Companion: SB 2237. Effective date: 90 days after enactment.

Purpose / Intent

HB 4317 increases monetary sanctions and remedies available under Michigan’s Payment of Wages and Fringe Benefits Act for employers who violate requirements to pay wages and fringe benefits. The bill strengthens enforcement by raising penalties, increasing exemplary damages for serious violations, and clarifying recoverable costs.

Key provisions and changes

The bill amends section 18 (MCL 408.488) to do the following:

  • Order of payment: Confirms the department may order employers who violate sections 2–8 to pay:
    • Wages due to the employee.
    • Fringe benefits due (per written contract or policy).
  • Increased statutory penalty:
    • Replaces the current annual penalty rate of 10% with 100% annually on unpaid wages and fringe benefits. The penalty accrues from the time the employer is notified that a complaint has been filed until payment is made.
  • Higher exemplary damages for flagrant/repeated violations:
    • Raises the cap on exemplary (punitive) damages from “not more than twice” (2×) the wages/fringe benefits to “not more than three times” (3×).
  • Recovery of costs:
    • The department may order employers to pay attorney fees, hearing costs, and transcript costs.
  • Higher civil fine:
    • Raises the civil penalty the department may assess from up to $1,000 to up to $10,000. The bill indicates the civil penalty is to be credited to the state general fund.

Who is affected

  • Employers subject to Michigan’s Payment of Wages and Fringe Benefits Act — particularly employers found to have failed to timely pay wages or fringe benefits, or who engage in repeated or flagrant violations.
  • Employees owed wages or fringe benefits — increases potential recoveries (wages/benefits, accelerated penalties, exemplary damages, and costs).
  • State enforcement (Department of Labor) — expanded authority to order larger financial remedies and collect higher civil fines.

Procedural / timeline notes

  • Introduced in the House and referred to the Committee on Economic Competitiveness (first read 04/16/2025).
  • Committee substitute considered and reported favorably as substituted (committee actions late April/early May 2025); committee report sent to calendars (05/02/2025).
  • If enacted, the amendment takes effect 90 days after the law’s enactment.

Practical impact

If enacted, HB 4317 would substantially increase an employer’s financial exposure for wage/fringe-benefit violations: unpaid amounts could incur a 100% annual penalty, exemplary damages could reach 3× for serious violations, and civil fines could be up to $10,000. This raises both deterrence and potential recovery for employees, and increases enforcement stakes for employers.

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

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