LANSING — House and Senate Democrats introduced a legislative package to Prevent Wage Theft today which will put money back in the pockets of Michigan’s hardworking men and women. A report from the Economic Policy Institute earlier this year found that more than 130,000 Michigan workers across all demographic groups are losing $429 million annually as a result of wage theft.
“Every person deserves to take home the wages they earn. But across the state, many Michiganders are losing their hard-earned pay to wage theft,” said House Democratic Leader Sam Singh (D-East Lansing). “For the person who is losing $3000 or $4000 a year, that is a make-or-break amount of money and they deserve to get it back. It isn’t a handout and it isn’t a credit — it is money owed to them, that they earned honestly and were denied. While Republicans in Lansing and Washington, D.C. are focused on giving handouts to the top 1 percent, Michigan Democrats are putting working families first with a plan to put more money back in hands of Michigan families.”
The five-bill package, House Bills 5326-5330, seeks to address the varying forms wage theft can take, including things like failure of an employer to pay overtime, offering a “training wage” to young employees, tip confiscation or failure to distribute pay stubs. The legislation would:
- Pay Workers Back Lost Wages and More. Companies that commit wage theft would be eligible for financial penalties to pay workers three times the amount owed, which would be an increase from the existing limit of two times the amount owed.
- Make Enforcing the Law a Priority. The number of staff in the Department of Licensing and Regulatory Affairs responsible for pursuing wage theft violations would be doubled.
- Increase Penalties on Bad Actors. The civil penalty for violators would increase from 10 percent annually on the wages and benefits to 100 percent annually. The criminal penalty would also increase from a misdemeanor to a felony, and fines would increase from up to $1,000 to up to $10,000, for repeat wage theft violators.
“Michigan has the hardest-working people I know, and they deserve every dollar they earn,” said state Rep. Winnie Brinks (D-Grand Rapids). “That’s why it’s unforgivable when their employers try to cheat them out of their wages. Disreputable employers who profit off other people’s labor and don’t pay them fairly in return must be held accountable. Michigan families need the money they earned so that they can buy clothes for their children, get dinner on the table and put gas in the tank so they get to work the next day. Our legislation will make sure workers get paid and help families make ends meet.”