Can an employer in Michigan take wages out of an employee’s paycheck if they suspect he/she stole money?

If an employee’s position requires them to handle money (e.g. a cashier, office manager, etc.), their employer cannot take money out of their paycheck if they suspect he/she took money from them. For example, if an employee worked as a cashier and their register came up short, their employer could accuse them of taking the money, however, the employer cannot withhold money from the employee’s paycheck simply because he/she believes the employee took it.

In fact, according to Public Act 390 of 1978, “an employer shall not deduct from the wages of an employee, directly or indirectly, any amount…without the full, free, and written consent of the employee, obtained without intimidation or fear of discharge for refusal to permit the deduction” [Source: Michigan Department of Labor and Economic Opportunity]. If an employee admitted to taking the money, he/she could then provide their employer with written consent to deduct the missing money from their paycheck, although an admission to theft could also result in an employee facing criminal charges.

What if an employer withholds money from an employee’s paycheck without their written consent?

When an employer withholds money from an employee’s paycheck without written consent, the employee can file a written complaint against their employer for violating Act 390. To file a formal complaint, an employee will need to fill out the Wage and Benefit Complaint Form. This form, once completed, can be filed in one of three ways which include:

• Online. An employee looking to file a complaint against their employer for nonpayment of wages can do so online by clicking here.

• In person. The Wage and Benefit Complaint Form can be filed in person at one of the two locations:

530 W. Allegan Street

Lansing, MI 48933

3026 W. Grand Blvd., Suite 9-450

Detroit, MI 48202

• By mail. An employee can mail their complaint form for unpaid wages to the following address:

Michigan Department of Labor and Economic Opportunity Wage and Hour Division

P.O. Box 30476

Lansing, MI 48909-7976

An employee is only permitted to file a complaint for nonpayment of wages within 12 months from the date of the alleged violation. After the 12 months have passed, the Department may not accept the complaint. The Department may also reject a complaint if:

• The work was not performed in Michigan.
• The employer in question has filed for bankruptcy or has been determined bankrupt.
• The complaint form was missing information or did not have enough information to justify an investigation.

Should an employee hire a Michigan employment law attorney if their employer took wages from them?

It can’t hurt for an employee to discuss their issue with an employment law lawyer. The reason being is an attorney is going to help an individual understand their rights and how they can be exercised whereas the Department may only provide vague information that doesn’t quite address the employee’s concern. Therefore, it is recommended that an employee schedule an initial consultation with an employment law attorney in Michigan to determine if their legal help is needed in order to get the issue resolved.

If an employee would like to be connected with an employment law attorney in Detroit, Grand Rapids, Warren, or any other city in Michigan, they can contact USAttorneys.com.