Direct deposit provisions - Michigan

Michigan law allows employers (private and public) to pay employees via direct deposit. The law maintains that employers should not initiate direct deposit without the “full, free, and written consent” of the employee; but while that language is still in the books, later amendments allow employers to move forward with electronic payroll options without written consent as long as the employee can choose which option (e.g., direct deposit versus a payroll card). The employer must ensure that employees receive the proper notifications; that the employees may choose their own financial institutions; and that there are no fees or costs to the employee to access wages.