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Michigan Electronic Pay Amendment Takes Effect
Effective December 21, 2010, the Michigan Wages and Fringe Benefits Act (MWFBA) was amended permitting Michigan employers to require their Michigan-based employees be paid via direct deposit or via a payroll debit card. Previously, employers had to issue paper checks if the employee did not give his or her “full, free and written” consent to direct deposit. Likewise, unless payroll debit cards were in place prior to January 1, 2005, “full, free and written” consent also was required for use of payroll debit cards. Currently, most other states do not allow employers to require the use of direct deposit or payroll debit cards.
