Final Paycheck Demand and Wage Claim — Michigan

Final Paycheck Demand and Wage Claim (MICHIGAN)

Quick-Reference Summary

PART A — Demand Letter to Former Employer

[CLAIMANT FULL LEGAL NAME]
[Street Address]
[City], Michigan [ZIP]
Telephone: [(___) ___-____]
Email: [________________________________]

Date: [__/__/____]

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [________________________________]
Certified Mail Tracking No.: [________________________________]

To:
[Employer Legal Name], [Entity Type]
Attn: [Owner / President / HR Director / Resident Agent]
[Street Address]
[City], [State] [ZIP]

Re: Demand for Payment of Final Wages and Fringe Benefits under the Michigan Payment of Wages and Fringe Benefits Act, MCL §§ 408.471 et seq. — Notice of Intent to File LEO Wage Complaint and/or Civil Action

I. Identification of Employment Relationship

The work giving rise to this claim was performed in Michigan, bringing the claim within the PWFBA's jurisdictional scope (MCL § 408.471 et seq.).

II. Separation from Employment

On [__/__/____], my employment with [Employer] ended by reason of:

☐ Involuntary discharge / termination
☐ Layoff / reduction-in-force
☐ Voluntary resignation (notice given [__/__/____])
☐ End of fixed-term contract
☐ Other: [____________________________________]

The wages earned and due could with due diligence be determined no later than [__/__/____]. ☐ Employee was discharged, so MCL § 408.475(2) required immediate payment once the amount could be determined. ☐ Employee voluntarily left, so § 408.475(1) required payment as soon as the amount could be determined. As of the date of this letter, the unpaid amounts itemized below remain outstanding.

III. Itemized Statement of Wages and Fringe Benefits Owed

Supporting documentation enclosed (or available on request):
☐ Pay stubs / earnings statements
☐ Offer letter / written employment agreement
☐ Employee handbook excerpts (vacation, holiday, bonus, commission policies)
☐ Written commission/bonus plan
☐ Time records / schedules
☐ Expense receipts and reimbursement policy
☐ Correspondence regarding separation and final pay

IV. Statutory Provisions Violated

1. MCL § 408.475 (separation pay): An employer must pay a discharged employee immediately, as soon as wages earned and due can with due diligence be determined, and must pay an employee voluntarily leaving as soon as the amount can with due diligence be determined.

2. MCL § 408.472 (regular wage-payment schedules): This section governs recurring weekly, biweekly, semimonthly, and monthly wage-payment schedules; it does not supply the separation-payment rule.

3. MCL § 408.478 (deductions): Deductions from wages without written authorization are unlawful.

4. MCL § 408.471(e) and § 408.473 (fringe benefits): Fringe benefits due under a written contract or written policy must be paid according to that contract or policy. MCL § 408.474 separately limits withholding of a fringe benefit due at termination.

V. Damages, Penalties, and Exemplary Damages

1. Unpaid wages and fringes (MCL § 408.488(1)(a)–(b)): The Department / court SHALL order payment of all wages due and fringe benefits due per the employer's written contract or written policy.

2. 10% annual penalty (MCL § 408.488(1)(c)): A penalty at the rate of 10% annually runs on the unpaid wages and fringe benefits beginning when the employer is notified that a complaint has been filed and ending when payment is made.

3. Exemplary damages up to 2× (MCL § 408.488(2)): For flagrant or repeated violations, the Department / court MAY order exemplary damages of up to twice the amount of the wages and fringes due. Repeated violations and willful nonpayment after written demand both support exemplary damages.

4. Attorney costs, hearing costs, transcript costs (MCL § 408.488(3)): Recoverable from the employer.

5. Civil penalty up to $1,000 (MCL § 408.488(4)): The Department may assess up to $1,000, payable to the state general fund.

6. Retaliation protection (MCL § 408.483): It is unlawful for an employer to discharge or discriminate against an employee because the employee filed a complaint under the PWFBA.

7. FLSA back-stop: For any federal minimum-wage or overtime component, the employee may also recover federal back wages plus liquidated damages = back wages and mandatory attorney's fees under 29 U.S.C. § 216(b).

VI. Demand for Payment

I hereby DEMAND payment in full of $[_______________] no later than [__/__/____] ([14 / 21] calendar days from the date of this letter).

If the matter proceeds to LEO complaint or civil action, I will pursue:

• $[_____________] principal wages and fringes
• • 10% annual penalty from notice date through payment
• • up to 2× exemplary damages (flagrant/repeated violation)
• • attorney, hearing, transcript costs
• • FLSA liquidated damages (back wages doubled) for any min-wage/OT component
• • pre- and post-judgment interest

Payment must be made by:

☐ Certified or cashier's check payable to "[Claimant Name]" delivered to the address above; OR
☐ Wire/ACH to: [Bank Name] / Routing [________________] / Account [________________].

VII. Litigation Hold / Preservation Demand

You are placed on notice that civil litigation and/or LEO administrative proceedings are reasonably anticipated. Preserve all ESI and tangible evidence relating to my employment and compensation, including: time and attendance records; payroll registers; pay stubs; W-2s, W-4s, 1099s; direct-deposit records; commission/bonus plans and calculation worksheets; vacation/PTO accrual records; written employee handbook (all versions in effect during my employment) and the specific written policies establishing my fringe benefits; offer letter and employment agreements; internal emails, text messages, and Slack/Teams communications regarding my pay or separation; expense receipts; bank statements showing payroll transfers; and payroll-service (ADP/Paychex/Gusto/Paycor) records.

Spoliation may give rise to sanctions and adverse-inference instructions.

VIII. Notice of Intent to File LEO Complaint and/or Civil Action

If full payment is not received by [__/__/____], I intend, WITHOUT FURTHER NOTICE, to:

☐ File an Employment Wage Complaint with the Michigan Department of Labor and Economic Opportunity (LEO), Wage and Hour Program, online at https://forms.leo.state.mi.us/whd/wageclaim/ or by submitting Form WH-43, seeking the unpaid wages and fringe benefits, the 10% annual penalty, up to 2× exemplary damages, costs, and a civil penalty; AND/OR

☐ Commence a civil action in the Circuit Court of [_______________] County, Michigan (claims > $25,000), or District Court (claims ≤ $25,000), under MCL § 408.488 and breach of contract, seeking the unpaid wages and fringes, statutory penalties, exemplary damages, costs, attorney's fees, and pre- and post-judgment interest; and may bring a federal FLSA action for any minimum-wage or overtime component.

I reserve all rights under federal law (FLSA, 29 U.S.C. § 201 et seq.) and all Michigan statutory and common-law remedies (including breach of contract under MCL § 600.5807).

Sincerely,

________________________________________
[Claimant Full Legal Name]

Enclosures: [list]

PART B — LEO Wage and Hour Filing

B.1 Filing Agency

Michigan Department of Labor and Economic Opportunity (LEO)
Bureau of Employment Relations — Wage and Hour Program
P.O. Box 30476
Lansing, MI 48909-7976
Phone: (517) 284-7800
Web: https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour
Online complaint: https://forms.leo.state.mi.us/whd/wageclaim/
Paper form WH-43 (PDF): https://www.michigan.gov/leo/-/media/Project/Websites/leo/Documents/WAGE-HOUR/WHD-94xx--Forms/WHD-9430-Employment-Wage-Complaint/WH43_Employment_Wage_Complaint_Form_R6_29_05.pdf

B.2 Required Form

• Online Employment Wage and Benefit Complaint Form (preferred): https://forms.leo.state.mi.us/whd/wageclaim/
• Form WH-43 (paper): mail to address above
• For Earned Sick Time Act violations: file via LEO online form (3-year deadline)
• For Prevailing Wage Law (limited ongoing projects only): different paper form

B.3 Three Wage Laws Administered

B.4 Information Required to File (PWFBA)

☐ Claimant full legal name, address, phone, email
☐ Employer legal name, DBA, physical address (Michigan)
☐ People in charge at the company (owner, manager, payroll)
☐ Position, dates of employment, work location
☐ Rate of pay, pay schedule
☐ Itemized amount claimed (wages vs. fringes — separate columns)
☐ Pay periods unpaid
☐ Description of written contract / written policy supporting each fringe benefit claimed
☐ Whether you have filed a lawsuit on the same issue (if yes, LEO generally cannot proceed)

B.5 Attachments Recommended

☐ Copy of demand letter (Part A) with certified-mail proof
☐ Pay stubs, W-2s
☐ Written employment agreement / offer letter
☐ Employee handbook excerpts (the specific written policies that create each fringe benefit)
☐ Written commission/bonus plan
☐ Time records / schedules
☐ Fringe-benefit accrual records
☐ Calculations spreadsheet (separate wages from fringes)

B.6 Critical Deadlines

B.7 Election of Remedies

• If the employee has already filed a lawsuit on the same issue, LEO generally will NOT investigate (lawsuit supersedes).
• If the employee files an LEO complaint first, the employee CAN later file a lawsuit on the same issue (LEO complaint does not bar civil action).
• LEO investigates and may order: payment of wages and fringes, 10% annual penalty, up to 2× exemplary damages, costs, and a civil penalty up to $1,000.
• LEO does NOT award attorney's fees to the employee (only the employer's "attorney costs" are recoverable under § 408.488(3) — interpreted as costs the employee incurred). For full attorney's fees recovery, civil action under PWFBA is sometimes paired with FLSA, which provides mandatory fees.

B.8 LEO Process

1. LEO receives complaint (online or WH-43).
2. Investigator opens case, notifies employer (this triggers the 10% annual penalty clock under § 408.488(1)(c)).
3. Employer must produce wage and fringe records.
4. LEO mediates or issues a written determination.
5. Either party may request a contested-case administrative hearing.
6. LEO determinations are enforceable in circuit court.

PART C — Pre-Send Checklist

☐ Confirm work was performed in Michigan
☐ Confirm claimant is an "employee" (§ 408.471(c)), not bona fide independent contractor
☐ Determine when final wages could with due diligence be calculated; apply the discharged/voluntary rule in MCL § 408.475
☐ Itemize each component as wages vs. fringe benefits (different statutory treatment)
☐ For each fringe benefit, identify the specific written contract / written policy that creates the obligation (handbook page, plan document, offer letter clause)
☐ Verify the 12-month LEO complaint deadline has not run (count from each unpaid payday)
☐ Calculate 10% annual penalty from anticipated complaint-notice date
☐ Evaluate flagrant/repeated facts to support 2× exemplary damages claim
☐ Confirm no concurrent lawsuit on the same issue (would block LEO)
☐ Confirm employer hasn't already paid the claim (mooting)
☐ Send by certified mail, return receipt requested AND by email
☐ Save proof of service
☐ Issue litigation-hold letter
☐ Preserve claimant's own records (pay stubs, emails, texts, time records, handbook copy)
☐ Choose forum: LEO complaint, civil action (district/circuit), or FLSA federal action — or sequence them
☐ For OT/min-wage component, plan for WOWA + FLSA parallel pursuit
☐ Remove all and blocks before sending

Sources and References

• Payment of Wages and Fringe Benefits Act overview (LEO): https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/payment-of-wages-and-fringe-benefits-act-public-act-390-of-1978
• MCL § 408.471 (definitions): https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-408-471
• MCL § 408.472 (regular wage-payment schedules): https://www.legislature.mi.gov/documents/mcl/pdf/mcl-408-472.pdf
• MCL § 408.474 (withholding termination-date fringe benefits): https://www.legislature.mi.gov/documents/mcl/pdf/mcl-408-474.pdf
• MCL § 408.475 (separation pay timing): https://www.legislature.mi.gov/documents/mcl/pdf/mcl-408-475.pdf
• MCL § 408.488 (violations; orders; civil penalty): https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-488
• MCL § 408.481 (filing complaint; 12-month deadline): https://www.legislature.mi.gov/Laws/MCL?objectName=MCL-408-481
• LEO Online Employment Wage Complaint Form: https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/complaint
• Online complaint tool: https://forms.leo.state.mi.us/whd/wageclaim/
• Form WH-43 (paper): https://www.michigan.gov/leo/-/media/Project/Websites/leo/Documents/WAGE-HOUR/WHD-94xx--Forms/WHD-9430-Employment-Wage-Complaint/WH43_Employment_Wage_Complaint_Form_R6_29_05.pdf
• Michigan Legal Help — Filing a Complaint with the Michigan Wage and Hour Program: https://michiganlegalhelp.org/resources/employment/filing-complaint-michigan-wage-and-hour-program
• MCL § 600.5807 (6-year SOL contracts/statutes): https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-600-5807
• FLSA: https://www.dol.gov/agencies/whd/flsa