Licensing and Regulatory Affairs
This Act permits employees to file claims against employers with the Wage and Hour Program (Department). Claims generally relate to unpaid wages or fringe benefits. Wages are defined as all earnings of an employee whether determined on the basis of time, task, piece, commission, or other method of calculation for labor or services. Fringe benefits are defined as vacation pay, sick pay, holiday pay, bonuses and authorized expenses pursuant to the employer’s written policy or contract. After an investigation, the Department issues a Determination Order deciding the employee’s claim. The employee and the employer each have the right to appeal this Order within 14 days. All appeals are sent to MOAHR for adjudication by ALJs.
The Appellant (employer or employee) has the burden of proof to support reversal of the Department’s Determination Order. All parties may be represented by an Attorney or representative. ALJs hold hearings and prehearing conferences as needed. Settlement is encouraged during this process. The Department is a third party to this proceeding.
Within 30 days after close of the record, the ALJ issues a decision. This decision may affirm, modify, or rescind the Determination Order. Costs may also be assessed. The parties have 60 days to file an appeal to the Circuit Court based on the hearing record (MCL 24.304).
If an ALJ’s decision is not appealed, it is enforced as a final agency order by the Department with aid of the Attorney General’s Office. If necessary, the Attorney General will file a civil action to enforce the final agency order.