2024 House Bill 5620

AI Analysis – Experimental

The proposed legislation seeks to amend the 1978 PA 390, which governs the payment of wages and fringe benefits to employees, by introducing several key changes. The bill mandates that employers who violate specific sections of the act must pay due wages and fringe benefits to employees, along with a 10% annual penalty on these amounts from the time a complaint is filed until payment is made. Additionally, for flagrant or repeated violations, employers may be required to pay exemplary damages up to twice the amount of the due wages and fringe benefits. The bill also allows for the recovery of attorney, hearing, and transcript costs by the employee. Furthermore, the legislation increases the civil fine for general violations to a maximum of $1,000, which will be credited to the state's general fund.

The bill introduces a tiered penalty system for violations of section 9A, starting with a notice of violation and a 14-day correction period for first-time offenders, followed by escalating fines for subsequent violations: up to $500 for the first violation, $5,000 for the second, $15,000 for the third, and $25,000 for the fourth and subsequent violations. Additionally, individuals aggrieved by a violation of section 9A can bring an action to recover actual damages, with courts mandated to award either actual damages or $10,000 (whichever is greater), plus actual costs including reasonable attorney fees. These new sanctions and remedies are supplementary to any other penalties or remedies already established under the act. The enactment of this bill is contingent upon the passage of Senate Bill No.____ or House Bill No. 5619 of the 102nd Legislature.