2003 Senate Bill 851 / 2004 Public Act 534

Streamline electronic pay check procedures

Introduced in the Senate

Dec. 2, 2003

Introduced by Sen. Jason Allen (R-37)

To allow employers to pay wages by electronic funds transfer only. The bill would require employers who choose to do so to notify current employees and give them at least six weeks to establish an account at a financial institution to accept the deposit or transfer of wages.

Referred to the Committee on Local, Urban, and State Affairs

March 30, 2004

Reported without amendment

With the recommendation that the bill pass.

June 30, 2004

Substitute offered by Sen. Jason Allen (R-37)

To replace the previous version of the bill with one that does not allow an employer to pay wages by electronic funds transfer only, but does streamline the procedures for using this form of payment. Under current law, the employer must receive prior consent from each employee. The bill would eliminate this requirement, but allow employees to opt out and still receive a paper pay check.

The substitute passed by voice vote

Passed in the Senate 36 to 0 (details)

To allow employers to pay wages by electronic funds transfer or debit card without receiving prior written consent from each employee, which is required under current law. Employees would still be allowed to opt out and receive a paper pay check. An employer could not charge any fees for these payment methods.

Received in the House

June 30, 2004

Referred to the Committee on Government Operations

Sept. 15, 2004

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Dec. 8, 2004

Substitute offered

To replace the previous version of the bill with one that incorporates technical changes resulting from committee testimony and deliberation. This version was subsequently superceded by another substitute with more technical changes.

The substitute passed by voice vote

Substitute offered by Rep. James Koetje (R-86)

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Dec. 9, 2004

Substitute offered

To allow employers to pay employees with debit cards without permission from the employee.

The substitute passed by voice vote

Passed in the House 102 to 3 (details)

To allow employers to pay wages by debit card without receiving prior written consent from each employee, which is required under current law. Employer could also pay via electronic funds transfer if an employee agrees. An employer could not charge any fees for these payment methods.

Received in the Senate

Dec. 9, 2004

To concur with the House-passed version of the bill.

Passed in the Senate 36 to 0 (details)

Signed by Gov. Jennifer Granholm

Dec. 31, 2004