Compliance
Exemplary Damages
Increased financial penalties awarded for flagrant or repeated violations of the Act.
Definition
Under Michigan Senate Bill 6, 'exemplary damages' refer to additional financial penalties that the Department of Labor and Economic Opportunity (LEO) may order an employer to pay to an employee if the employer's violation of the Wages and Fringe Benefits Act is deemed flagrant or repeated. The bill proposes to increase these damages from up to twice the amount of owed wages and fringe benefits to up to three times the amount, serving as a stronger deterrent against egregious non-compliance.