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Summary of differences between federal and state regulations
Employers are not required by federal law to give former employees their final paycheck immediately. Some states, however, may require immediate payment or payment within a specific time period.
In Michigan, for either voluntary or involuntary termination the final paycheck must be paid on the next regular payday. (Michigan Administration Code Rule §408.9007(1).)
In relation to vacation pay for separated employees, Michigan employers are required to pay fringe benefits in accordance with written contract or written policy. If the company policy has a pay-out provision which states that unused time will be paid when employees separate their employment, then employers would be obligated to pay for the unused time. The employer would not be legally obligated to pay for unused time if the company policy does not address the issue. Reference: The Payment of Wages and Fringe Benefits Act, Public Act 390 of 1978.
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Regulations
R 408.9007 Payment of wages on termination.
The Payment of Wages and Fringe Benefits Act, Public Act 390 of 1978