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Bill

HB 4230

LOCAL GOVERNMENT-TECH

104th Regular Session Introduced by Anthony DeLuca

Public employers may set up payroll deductions for political contributions with employee consent, within wage protection rules and recordkeeping requirements.

Referred to Rules Committee
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Bill Summary · HB 4230

Summary — HB 4230 (Wages & Fringe Benefits Act; MCL 408.477)

Status: Enacted as Public Act 243 of 2023 (assigned PA 243’23). Introduced March 9, 2023; approved by governor November 29, 2023; effective February 13, 2024.

Main purpose

HB 4230 removes a statutory prohibition that prevented public bodies from administering payroll-deduction plans to collect employee contributions for political purposes. The bill restores the ability of public employers (with employee consent) to facilitate payroll deductions for contributions to political committees/separate segregated funds.

Key provisions / changes

  • Amends section 7 of the Wages and Fringe Benefits Act (MCL 408.477).
  • Removes the sentence that barred an employer that is a “public body” from deducting any amount from an employee’s wages for:
    • Contributions to a separate segregated fund under section 55 of the Michigan Campaign Finance Act (MCL 169.255), or
    • Contributions/payments to committees established under the federal Election Campaign Act.
  • Leaves intact the general rule that, except when required or expressly permitted by law or by collective bargaining agreement, employers must obtain an employee’s full, free, written consent before making any wage deduction.
  • Continued protections: deductions still may not reduce wages below applicable minimum wage thresholds; recordkeeping and consent requirements remain in force.

Who is affected

  • Public bodies (as defined in the Michigan Campaign Finance Act): state executive agencies, the legislature, counties, cities, townships, villages, school districts, special districts, boards/commissions, and other governmental entities or bodies primarily funded by state/local authority.
  • Employees of those public bodies who may choose to authorize payroll deductions for political contributions.
  • Political committees and separate segregated funds that could receive contributions via payroll withholding administered by public employers.

Background & context

  • The Michigan Supreme Court in Michigan Education Association v. Secretary of State (2011) held that a public school district could not lawfully administer payroll deductions to remit employee contributions to a union political committee because that used public resources for political purposes.
  • The Court’s ruling was codified by 2012 legislation that explicitly prohibited public bodies from establishing or administering such payroll-deduction plans. HB 4230 reverses that 2012 prohibition.

Fiscal impact & implementation

  • The House Fiscal Agency estimated an indeterminate but likely minimal fiscal impact on public bodies. Any costs would be primarily administrative (payroll system changes or processing). Because payroll deduction is often automated, expenses are expected to be small; some employers may obtain reimbursement for administrative costs.
  • HB 4230 was discussed alongside a complementary change to the Michigan Campaign Finance Act (proposed in HB 4234) to address campaign finance provisions connected to payroll deductions.

Stakeholder positions (committee record)

  • Support: several labor unions and organized labor groups (e.g., Amalgamated Transit Union, UAW locals, AFSCME Council 25, Michigan AFL‑CIO, MEA).
  • Opposition or concerns: Michigan Municipal League and some election integrity groups.

Practical effect

Public employers may now, subject to existing consent and wage-protection rules, set up and administer payroll-deduction plans that forward employee-authorized contributions to political committees/separate segregated funds. Employee consent remains required and procedural safeguards in the wages act apply.

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

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