Employees count on payday to come as expected so they can pay their bills and meet other financial commitments on time. Not receiving your paycheck as scheduled can be a stressful experience that may set off a chain reaction of missed payments that may require legal assistance to resolve.
Michigan laws protect employees from employers who fail to pay them the agreed-upon amount at the expected time. It’s important to understand your legal rights if you are experiencing a delay with your paycheck.
How Soon Must Paychecks Be Sent Under Michigan Law?
Michigan’s Payment of Wages and Fringe Benefits Act governs the frequency of paycheck distribution. Most employers must pay their salaried and hourly employees twice a month; however, a company can choose to pay its employees on a more frequent schedule than semi-monthly or pay them monthly.
Whether you receive your wages monthly, biweekly, or weekly depends on your contract. According to the Payment of Wages and Fringe Benefits Act, the only exception to timely payments is if employees harvest crops by hand. They can receive wages on a weekly basis unless otherwise specified in writing as part of the employment contract.
Michigan Employers: How Long Can They Delay Your Paycheck?
All employers in Michigan reserve the right to delay any overtime wages in December by a full pay period. You might not receive your overtime wages from the first payday in December until the second pay period of the month.
Your employer can only delay or withhold your paycheck if you’ve given written consent not to receive it on time. If your employer does not want to pay what you have earned and you haven’t given this permission for a delay, you have the right to receive your wages.
How Can I Recover My Withheld Paycheck?
If your company owes you delayed wages, you have a few legal avenues for filing your complaint. Our Michigan unpaid wages attorneys can help you put together your case and take your claim to court if needed to recover the money you are owed.
SPEAK TO YOUR UNION
The rights of employees who belong to labor unions are in their union contracts. Union contracts negotiate wages and benefits for members. As a union member, you can file grievances with your union representative. This process is established in the contract between the union and your employer. You should speak to your union representative and file a grievance before submitting a legal complaint.
FILE A COMPLAINT WITH MICHIGAN’S WAGE AND HOUR PROGRAM
Michigan’s Department of Licensing and Regulatory Affairs (LARA)’s Wage and Hour Program handles claims against employers for unpaid wages. You may resolve your complaint in the following steps:
- Complete a paper wage complaint form online.
- Have an investigator examine your claim. After completing the investigation, the department issues a Determination Order deciding the claim. You and your employer have a right to appeal the order within 14 days.
- Any appeals must go through the Michigan Office of Administrative Hearings and Rules. The administrative law judge can hold hearings and pre-trial conferences as needed. The department encourages a settlement at this stage. You can have your attorney represent you.
- The judge institutes a decision to confirm, modify, or revoke the Determination Order. The department and the Attorney General’s office enforce the decision as to the final order of the program.
FILE A COMPLAINT WITH THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (EEOC)
If you believe your wages were delayed based on discrimination, you may file a complaint with the EEOC. By federal law, employers cannot discriminate against employees. This includes delaying wages based on an employee’s age, sex, race, political affiliation, national origin, and other factors.
What Are the Common Reasons for Paycheck Delays?
Although paycheck delays are supremely frustrating and even life-altering, it can be helpful to know the common causes of these delays to learn how they might be resolved. Administrative errors are one of the leading causes of pay delays in the workplace. These errors can range from simple data entry mistakes to more complex payroll processing issues.
Common Administrative Errors
- Data Entry Mistakes: Incorrect employee information, such as hours worked or pay rates, can result in delayed payments.
- Payroll Processing Issues: Technical glitches or delays in processing payroll due to internal inefficiencies can lead to payment delays for employees.
Financial Difficulties
Employer financial difficulties can also contribute to wage payment delays. In challenging economic times or during periods of financial strain, employers may struggle to meet their payroll obligations. Factors contributing to financial difficulties may include:
- Cash Flow Problems: Insufficient cash flow to cover payroll expenses can result in delayed wage payments to employees.
- Bankruptcy or Insolvency: In severe cases, employer bankruptcy or insolvency may lead to unpaid wages for employees.
Potential Consequences for Employers
Penalties and Fines
Employers who fail to pay wages on time may face legal and financial consequences. In Michigan, the law mandates prompt payment of wages, and employers found in violation may be subject to penalties and fines.
Damage to Reputation
Wage disputes can significantly damage an employer’s reputation and employee relations. Delayed or unpaid wages can erode trust and morale among employees, leading to decreased productivity and increased turnover. Additionally, negative publicity resulting from wage disputes can tarnish an employer’s reputation within the community and industry.
Understanding Your Employment Contract
Employees should carefully review their employment contracts to understand their rights and protections regarding pay and wage delays. Important clauses related to pay, such as payment schedules and remedies for wage disputes, may be outlined in the contract. Additionally, employees should consider negotiating terms in their contract to safeguard against delayed payments and ensure prompt resolution of any payment issues.
Understanding the common reasons for pay delays, potential consequences for employers, and the importance of reviewing and negotiating employment contracts are crucial steps for Michigan employees facing wage payment challenges. If you believe your employer has unlawfully delayed your wages, seeking legal guidance may be necessary to protect your rights.
Take Legal Action to Protect Your Rights to a Paycheck
Anytime your employer withholds wages you’ve earned, you should consider taking legal action against them to recover the compensation you’re owed. If you have been paid later than your regular payday, this can affect your bill payments and have serious financial consequences for you and your family.
Take steps to receive your paycheck on time when you work with an experienced employment attorney at Fieger Law.
Our knowledgeable lawyers can help you figure out if your employer’s actions were illegal and recommend the appropriate legal recourse, including filing a lawsuit if necessary. We have experience working with clients throughout the U.S. in employment law.
Call Fieger Law today and set up a free consultation to assess the best way to get the money your employer owes you.
Originally published March 28, 2022.
