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HB 5715

Military affairs: other; direct deposit for compensation of Michigan national guard members; provide for. Amends sec. 6 of 1978 PA 390 (MCL 408.476).

2025-2026 Regular Session Introduced by Greg Alexander and 24 co-sponsors

Requires Michigan National Guard to pay all servicemembers via direct deposit/electronic transfer, with banking info provided by servicemembers.

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION
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Bill Summary · HB 5715

Summary of Bill HB 5715 (2025-2026) — Michigan

Purpose and Intent

  • HB 5715 aims to amend 1978 PA 390 (the Wage Payment Act) to require the Michigan National Guard to pay its servicemembers by direct deposit or electronic transfer, starting with the first pay period for which a servicemember is entitled to wages for any duty status.
  • The bill also requires servicemembers to provide necessary banking information to enable direct deposit or electronic transfer.

Key Provisions and Changes

  • Sec. 6 framework (as amended):

    • Wages can be paid by:
    • (a) United States currency
    • (b) Negotiable check/draft payable upon presentation
    • (c) Direct deposit or electronic transfer to the employee’s bank/credit union account
    • (d) Payroll debit card (compliant with specified standards)
    • Employee consent:
    • Employers generally may not deposit wages into a bank account without full, free, written employee consent (with protections against coercion).
    • Payroll debit cards require employee consent, except for employers already using payroll debit cards as of Jan 1, 2005.
    • Employee choice and changes:
    • Employers may compel a method (direct deposit or payroll debit) only with a 30-day opt-out window support and must honor employee requests to switch methods within one pay period after request, without retaliation.
    • Payroll debit card standards (subsection (6)):
    • Cards must allow at least one fee-free withdrawal/transfer per pay period.
    • Fees and terms cannot be changed without 21 days’ advance notice.
    • Free balance inquiries must be available.
    • Cards cannot be linked to credit and cannot provide loans against future pay.
    • Special provision for Michigan National Guard (subsection (7)):
    • The Michigan National Guard must provide direct deposit/electronic transfer for all servicemembers’ wages beginning with the first pay period to which they are entitled.
    • Servicemembers must provide necessary information to implement direct deposit/electronic transfer.
    • Fees:
    • Employers may not charge employee fees for paying wages via the authorized methods (c or d).

  • Definitions:

    • Federally insured financial institution (banks, savings/loan associations, etc.).
    • Payroll debit card: a stored-value card issued by/on behalf of a federally insured institution, enabling wage access via ATM networks.

Who and What is Affected

  • Affected parties:
    • Michigan National Guard (as the employer)
    • Michigan National Guard servicemembers (as employees)
    • Employers in Michigan that pay wages using direct deposit, payroll debit cards, or other electronic methods
  • The bill creates a specific mandate for the Guard to use direct deposit/electronic transfer for all pay statuses.
  • Other employers retain flexibility but must adhere to consent and notification requirements for wage payment methods.

Procedural and Timeline Aspects

  • Effective date: Not explicitly stated in the text provided. The bill would take effect according to standard legislative processes after passage, potential rulemaking, and any applicable transition periods.
  • Implementation: Servicemembers must provide banking information to enable direct deposit/electronic transfer; the Guard must implement direct deposit/electronic transfer for all applicable pay periods going forward.
  • Relationship to existing laws: Amends Sec. 6 of 1978 PA 390 (as amended by 2012 PA 440).

Fiscal Implications (Summary)

  • The fiscal impact on the state is indeterminate. Potential costs may include:
    • Administrative adjustments within the Department of Military and Veterans Affairs to collect/manage banking information and process direct deposits for Guard members.
  • No anticipated impact on local governments.

Additional Context

  • Legislative analysis notes alignment with federal norms requiring direct deposit for most National Guard pay (Title 10/32 status), though state active duty pay may follow state processes.
  • The bill is being considered by the House Committee on Families and Veterans with a sponsor group that includes multiple representatives.

If you’d like, I can extract specific line-item language changes or compare this bill to current Michigan wage-payment statutes for a side-by-side reference.

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

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