Payroll Fraud

Michigan's Cracking Down on Payroll Fraud

• CONSUMER ALERT: Attorney General Dana Nessel issued a Consumer Alert to Provide Protective Measures for Workers and Businesses from Shuttered Payroll Companies.

  Payroll and tax fraud are illegal practices where employers fail to pay workers the full wages and benefits they are entitled to. “Employers steal billions from workers’ paychecks each year by misclassifying workers, paying less than legally mandated minimums, failing to pay for all hours worked, stealing tips from tipped workers, and not paying overtime premiums.” [EPI.org, 8/22/18] 

  These bad actors shrink paychecks and often force workers and their families to rely on social and welfare programs to make ends meet. In addition, payroll and tax fraud forces taxpayers to foot the bill for billions in lost tax revenue to the federal and state governments, and creates an unfair competition with employers who play by the rules.

  Here's how we're cracking down on these scams:

  • Establishing a Payroll Fraud Enforcement Unit in the Attorney General’s Office to go after the shady actors committing payroll fraud.
  • Strengthening whistleblower protections to shield employees who report wrongdoing and provide incentives when they do.
  • Toughening penalties against payroll fraud to make Michigan a leader in protecting workers.

  PAYROLL FRAUD HOTLINE: 833-221-1099