MI HB5540

Amends Michigan's wage payment law to allow law enforcement agencies to require employee reimbursement of training academy costs through signed loan forgiveness agreements, which are otherwise prohibited.

Establishes a tiered repayment schedule based on when an employee voluntarily leaves the agency: 100% of training costs if leaving within 1 year, declining to 10% if leaving after 4 years but before 5 years.

Requires loan forgiveness agreements to specify that the employer will pay for law enforcement training academy costs and detail conditions for payment and repayment obligations.

Preserves existing exceptions allowing fees from licensed employment agencies and maintains that employers cannot demand other fees or gifts as a condition of employment.

Takes effect 90 days after enactment.