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How Soon Do You Have To Be Paid After Leaving a Job

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  • 11-14-2005, 10:27 AM
    brunad
    How Soon Do You Have To Be Paid After Leaving a Job
    When an employee is terminated, is it true that all owed payroll needs to be paid back within 2 weeks?
    If so, what would the consequences be if not paid within 2 weeks?
  • 11-14-2005, 11:29 AM
    aaron
    Payment after termination of employment
    Michigan law provides,
    Quote:

    Quoting MCL 408.475 - Payment of employee voluntarily leaving employment.
    Sec. 5. (1) An employer shall pay to an employee voluntarily leaving employment all wages earned and due, as soon as the amount can with due diligence be determined. However, an employer shall pay all wages earned and due to an employee engaged in any phase of the hand harvesting of crops as soon as the amount can, with due diligence, be determined, but, in any event, not later than 3 days after the employee's voluntary termination of employment.

    Payment of discharged employee. (2) An employer shall immediately pay to an employee who has been discharged from employment all wages earned and due, as soon as the amount can with due diligence be determined.

    Inapplicability of section, employee under contract, manner of payment. (3) This section shall not apply to an employee working under contract who either voluntary [sic] leaves employment or is discharged from employment if the amount due cannot be determined until the termination of the contract. In such cases, the employer shall pay to the employee under the provisions of section 2 all wages earned by the employee as nearly as they can be estimated. Final payment shall be made in full at the termination of the contract.

    In my experience, many employers pay their terminated employees at the regularly scheduled time, taking the position that they cannot reasonably determine all wages and earnings due prior to that time. If you think there has been a violation of the statute, you may wish to discuss the matter with the Michigan Department of Labor & Economic Growth, Wages & Hours division.
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