Affirmative Consent PAC Deductions Permitted

In 2011, the Michigan Supreme Court ruled that Michigan law prohibited using public resources to administer a payroll deduction plan for employee contributions to the MEA’s political action committee (PAC). MEA v Secretary of State, 489 Mich 194 (2011). That decision was codified in 2012 through amendments to the Michigan Campaign Finance Act and the Wages and Fringe Benefits Act.

Supported by nearly a dozen labor organizations (including the MEA), legislation effective February 13, 2024, amended both statutes to now permit payroll deductions to a labor organization’s PAC with an employee’s affirmative consent.

Public Act 244 of 2023 amended Section 57 of the Michigan Campaign Finance Act to remove the prohibition against public bodies administering payroll deduction plans for PAC contributions and to clarify that the prohibition against a public body making a “contribution” does not apply to the following:

If an individual who is contributing to a separate segregated fund affirmatively consents to the contribution, the use of public resources to establish and administer a payroll deduction plan to directly or indirectly collect a contribution to, or make an expenditure for, a committee. Affirmative consent does not expire until revoked by the individual who provides the affirmative consent. (Emphasis added.)

Relatedly, Public Act 243 of 2023 amended Section 7 of the Michigan Wages and Fringe Benefits Act to remove the prohibition against public bodies administering payroll deduction plans for PAC contributions.

Those amendments now permit, but do not require, public bodies to administer payroll deductions for PAC contributions. For employees represented by a labor organization, any contractual obligation must be bargained. Regardless of collective bargaining agreement language, the Michigan Campaign Finance Act requires an individual’s affirmative consent to administer a PAC deduction plan.

If a bargaining proposal is made to include payroll deductions for PAC contributions, the school has options, starting with “no.” The obligation to bargain in good faith “does not compel either party to agree to a proposal or make a concession.”

And, just like responding to a proposal for union dues payroll deduction, consider a trade-off for significant language that the school seeks. If your school agrees to payroll deduction provisions, be sure to require union indemnification language and, perhaps, an administrative fee paid by the union.

If union dues or PAC contribution deductions are bargained into the contract, we strongly recommend that the employee execute a signed and dated consent form that affirmatively consents to the deduction.