WAGE AND HOUR DEMAND LETTER
State of Michigan
Michigan Wage Laws and Fair Labor Standards Act Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Michigan ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[State Bar of Michigan Number (P#)]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if collective/class action contemplated]
Demand for Unpaid Wages Under Michigan Law and FLSA
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO MRE 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Michigan Workforce Opportunity Wage Act, MCL 408.411 et seq., the Michigan Payment of Wages and Fringe Benefits Act, MCL 408.471 et seq., and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. MICHIGAN-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Michigan's wage and hour laws provide protections through the Workforce Opportunity Wage Act (minimum wage) and the Payment of Wages and Fringe Benefits Act (wage payment). These statutes work in conjunction with federal FLSA protections.
Key Legal Framework:
| Category | Michigan Requirement | Citation |
|---|---|---|
| Minimum Wage | $10.33/hour (2024) | MCL 408.414 |
| Tipped Minimum | 38% of minimum wage ($3.93/hour) | MCL 408.414d |
| Overtime | 1.5x regular rate after 40 hours/week (FLSA) | 29 U.S.C. Section 207 |
| Youth Minimum | 85% of minimum wage for minors under 18 | MCL 408.414b |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Michigan wage claims | 3 years | MCL 600.5805(10) |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
| Breach of Contract | 6 years | MCL 600.5807(8) |
C. Michigan Wage Payment Requirements
Payment Timing Requirements (MCL 408.472):
| Situation | Requirement | Citation |
|---|---|---|
| Regular wages | On regular paydays, at least monthly | MCL 408.472 |
| Involuntary termination | Next regular payday | MCL 408.475 |
| Voluntary resignation | Next regular payday | MCL 408.475 |
| Fringe benefits | Per employer policy or agreement | MCL 408.473 |
Payroll Deductions (MCL 408.477):
- Written authorization required for most deductions
- Deductions for employer benefit require express consent
- Cash shortages, breakage, or losses cannot be deducted without consent
D. Enforcement Mechanisms
Administrative:
- Michigan Department of Labor and Economic Opportunity (LEO)
- Wage and Hour Division
- File complaint online at michigan.gov/leo
Private Right of Action (MCL 408.481, 408.488):
- Direct lawsuit in state circuit court
- Damages include unpaid wages plus interest
- Reasonable attorney's fees and costs
- Double damages for willful violations (MCL 408.488)
E. Michigan Tip Credit Rules
| Requirement | Standard | Citation |
|---|---|---|
| Cash wage minimum | 38% of minimum wage ($3.93/hour) | MCL 408.414d |
| Tip credit maximum | 62% of minimum wage | MCL 408.414d |
| Total must equal | $10.33/hour minimum | MCL 408.414 |
| Notice required | Yes | MCL 408.414d |
| Tip pooling | Valid for customarily tipped employees | Federal rules apply |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Michigan. During this employment, [Company Short Name] violated Michigan wage laws by:
[ ] Failing to pay the Michigan minimum wage of $10.33 per hour
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Failing to pay wages on regular paydays in violation of MCL 408.472
[ ] Failing to pay final wages on the next regular payday
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] Making unlawful deductions from wages without authorization
[ ] Unlawful tip pooling or tip credit violations
[ ] Failure to pay accrued fringe benefits
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Michigan] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly / Monthly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, late payment, etc.]
IV. LEGAL ANALYSIS
A. Michigan Workforce Opportunity Wage Act Violations
1. Minimum Wage Requirements (MCL 408.414)
The Michigan Workforce Opportunity Wage Act requires employers to pay employees at least $10.33 per hour. By [describe violation], [Company Short Name] failed to pay our client the minimum wage.
2. Covered Employers
The Act applies to employers with 2 or more employees. MCL 408.412(d).
B. Michigan Payment of Wages and Fringe Benefits Act Violations
1. Timely Payment (MCL 408.472)
Employers must pay wages on regular paydays designated in advance. [Company Short Name] failed to pay wages in a timely manner by [describe specific violation].
2. Fringe Benefits (MCL 408.473)
Employers must pay accrued fringe benefits according to written policies or agreements. [Describe any fringe benefit violations.]
C. FLSA Violations
1. Enterprise Coverage
[Company Short Name] is subject to the FLSA because it is an enterprise engaged in commerce with annual gross sales of at least $500,000. 29 U.S.C. Section 203(s)(1)(A).
2. Overtime Requirements (29 U.S.C. Section 207)
The FLSA requires employers to pay non-exempt employees overtime at a rate of 1.5 times the regular rate for all hours worked over 40 in a workweek.
Our client worked an average of [X hours] per week. [Company Short Name] failed to pay overtime compensation for an average of [X overtime hours] per week.
D. Willfulness
[Company Short Name]'s violations were willful, entitling our client to:
- Extended 3-year statute of limitations under FLSA
- Double damages under MCL 408.488
V. DAMAGES CALCULATION
A. Michigan and FLSA Damages
Relevant Period: [Start Date - 3 years prior to anticipated filing] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
3. Off-the-Clock Work
| Activity | Hours/Week | Rate | Weeks | Total |
|---|---|---|---|---|
| [Pre-shift work] | [X] | $[X.XX] | [X] | $[Amount] |
| Off-the-Clock Subtotal | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Unpaid Wages | $[Amount] |
| Michigan Double Damages (willful - MCL 408.488) | $[Amount] |
| OR FLSA Liquidated Damages (Equal Amount) | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Collective/Class Action Exposure
If this case proceeds as an FLSA collective action or state class action:
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Additional Damages | $[Amount] | [X employees] | $[Amount] |
| Collective Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Double damages / liquidated damages
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] Michigan Circuit Court, [County] County
[ ] United States District Court for the Eastern District of Michigan
[ ] United States District Court for the Western District of Michigan
The Complaint will seek:
1. Unpaid wages under MCL 408.414 and MCL 408.471 et seq.
2. Double damages under MCL 408.488 for willful violations
3. FLSA claims for unpaid minimum wage and overtime
4. FLSA liquidated damages under 29 U.S.C. Section 216(b)
5. Attorney's fees and costs
6. Collective/class certification
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior LEO investigations
[ ] Tip records (if applicable)
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Michigan Rule of Evidence 408 and applicable evidentiary privileges.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[State Bar of Michigan No. P#]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
MICHIGAN-SPECIFIC PRACTICE NOTES
[ ] Minimum Wage Increases: Michigan minimum wage is scheduled to increase annually; verify current rate
[ ] Double Damages: MCL 408.488 provides double damages for willful violations
[ ] No State Overtime Law: Michigan relies on FLSA for overtime; no separate state overtime statute
[ ] Fringe Benefits: Payment of Wages Act covers fringe benefits (vacation, sick leave, etc.)
[ ] Deductions: Written authorization required for wage deductions; MCL 408.477
[ ] LEO Enforcement: Michigan Department of Labor and Economic Opportunity handles wage complaints
- Website: michigan.gov/leo
- Phone: (855) 464-9243
[ ] At-Will State: Michigan is an at-will employment state; document retaliation concerns
[ ] Court Venue:
- Circuit Court: Primary venue for state claims
- Eastern District (Detroit): Southeast Michigan
- Western District (Grand Rapids): West Michigan
[ ] Agricultural Exemptions: Special rules apply for agricultural workers under MCL 408.414a
[ ] Small Employer Exemption: Minimum wage law applies to employers with 2+ employees