1. Whenever any person or persons, firm, corporation or association, whether acting as principal or agent, contractor or subcontractor, shall hire or employ any other person or persons for the performance of any labor or service, and shall issue to such person or persons time checks for the labor or service performed, it shall be unlawful for the person or persons, firm, corporation or association issuing such time checks to discount the same or deduct therefrom any portion of the same as such discount.
2. Any employer of labor, or agent or representative thereof, violating the provisions of subsection 1 shall be guilty of a misdemeanor.
3. Nothing in subsections 1 and 2 shall apply to persons, firms, associations or corporations making discounts, deductions, or pro rata payments in the course of bankruptcy or insolvency proceedings, or in the settlement of the estates of deceased persons.