Ogletree Deakins • June 17, 2016
The requirements and processes applicable to employers handling garnishments are primarily governed by state laws. Therefore, in addition to the federal Consumer Credit Protection Act (CCPA), multistate employers need to be aware of the garnishment requirements in all states. As if these issues are not enough, complicating it further for employer compliance initiatives is the fact that state legislatures frequently tweak garnishment requirements and processes. During the past several months, six states have made noteworthy changes to their garnishment laws and two states made major changes. This two part-series covers the changes to the garnishment laws in Michigan, Georgia, Tennessee, California, South Dakota, and West Virginia.
Littler Mendelson, P.C. • March 28, 2016
On March 22, 2016, Michigan joined Wisconsin, Texas, Louisiana, and Tennessee by amending its Franchise Investment Law to make it clear that unless otherwise specifically provided for in the franchise agreement, a franchisee is considered the sole employer of workers to whom it pays wages or provides a benefit plan.1 This amendment – one of six bills signed into law by Governor Rick Snyder since December 2015 – is designed to protect franchisors in the wake of the uncertainty created by the National Labor Relations Board’s ruling in Browning-Ferris Industries of California, Inc.2 pertaining to when a company may be considered a joint employer.
Effective immediately, municipalities in Michigan are prohibited from regulating the terms and conditions of employment for private employers. The state's Local Government Labor Regulatory Limitation Act specifically declares that regulation of the employment relationship between a private employer and its employees is a state matter and, consequently, outside the express or implied authority of local government bodies. Therefore, any local wage theft, "ban the box" or paid sick leave protections will be preempted under the new state law.
Ogletree Deakins • April 15, 2015
A wage garnishment is a court order that assists plaintiffs with the collection of judgments. Such an order requires an entity to withhold money (i.e., wages) owed to a judgment debtor and divert it to a judgment creditor in order to satisfy the judgment debt. An order for a wage garnishment is startlingly complex to administer and very risky for employers. For instance, if an employer does not timely answer a Michigan garnishment within 14 days, or fails to do any other act required by the court, it is subject to a judgment against it for the full amount of the employee’s debt.
Ogletree Deakins • November 11, 2014
On October 23, 2014, the Michigan Court of Appeals ruled that employees discharged for having failed a drug test because of their medical marijuana use are not disqualified from receiving unemployment benefits.
Ogletree Deakins • March 05, 2014
An order for a wage garnishment is surprisingly complex to administer and very risky for employers. For instance, if an employer does not answer a garnishment within 14 days or do any other act required by the court, it is subject to a judgment against it for the full amount of the employee’s debt. The employee’s debt may be small, in the range of several hundred or several thousand dollars. But they are not all small—in one case a court entered a default judgment against an employer for being late on a disclosure in the amount of $596,000.
Ogletree Deakins • January 07, 2013
The apparent practice by employers of requesting access to employees’ and applicants’ social media accounts, such as Facebook and Twitter, has led the state of Michigan to pass the Internet Privacy Protection Act (PA 478 of 2012)(IPPA). The Act was signed by Governor Rick Snyder on December 27, 2012, as part of a flurry of late session legislative activity and given immediate effect.
Brody and Associates, LLC • January 04, 2013
Employees in Michigan can now opt out of joining and paying dues to unions without sacrificing their jobs.
Young Conaway Stargatt & Taylor, LLP • January 02, 2013
Michigan is the latest State to pass a "Facebook-privacy" law. The law, called the Internet Privacy Protection Act, was signed by Gov. Rick Snyder last Friday. The law prohibits employers and educational institutions from asking applicants, employees, and students for information about the individual's social-media accounts, reports The Detroit News.
Ogletree Deakins • December 14, 2012
As expected and amid demonstrations by thousands of union supporters, the Michigan House of Representatives passed SB 116 and HB 4003, and both bills were signed by Governor Rick Snyder. Now officially known as PA 348 of 2012 and PA 349 of 2012, respectively, these Acts provide both private and public sector employees with the right to either join a union and pay dues or refrain from doing so.