Federal & State Regulations | Employment contracts - Michigan

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Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

The State of Michigan does not have any provisions specifically relating to employment contracts and union membership. It does, however, have the following provisions:

Payment of fringe benefits

An employer shall pay fringe benefits to an employee in accordance with the terms set forth in a written contract. 408.473 Sec. 3

Fringe benefits upon termination

An employer can not withhold a payment of compensation due an employee as a fringe benefit to be paid upon termination unless the withholding is agreed upon in a written contract voluntarily made by the employee. 408.474 Sec. 4

Payment upon termination

An employer shall pay to an employee voluntarily leaving employment, or who is discharged from employment, all wages earned and due as soon as the amount can be determined. However, if an employee is under contract such that the amount can not immediately be determined until the contract term is completed, the employer must pay all wages as well as can be determined, and the remainder in full at the termination of the contract. 408.475 Sec. 5

Nondisclosure requirement

An employer may not as a condition of employment require nondisclosure by employees of their wages or require employees to sign a waiver promising not to discuss their wages. 408.483a Sec. 13a