Michigan Introduces Comprehensive Equal Pay Package

The Michigan House of Representatives introduced the Equal Pay Package on March 19, 2024 (House Bill 5618, House Bill 5619, House Bill 5620, House Bill 5621, House Bill 5622, House Bill 5623, House Bill 5624, House Bill 5625, House Bill 5626 and House Bill 5627). In addition, two other bills (House Bill 4405 and House Bill 4406), which were introduced in April of 2023, are being included in the overall plan. The package works to enhance Michigan’s equal pay protection provisions and provide fair wages for all Michigan residents.

• The package not only explicitly states that an employer cannot pay wages to an employee based on a protected attribute or characteristic (religion, race, color, national origin, age, sex, sexual orientation, gender identity or expression, height, weight, marital status, etc.) to an employee at a rate that is different than that of another employee for equal work on jobs, it also clarifies that wages paid in accordance to seniority system, a merit system, a system based on quantity or quality of production are not a violation (House Bill 5624). Employers would also be prohibited from asking a potential candidate for information regarding the person's past wages, fringe benefits, credit score, or credit history (House Bill 5618).
• The legislation adds provisions requiring employers to create and maintain job descriptions for each position along with information on the essential duties and responsibilities of the job, the skills, training, and effort required to perform the job, the working conditions and schedule under which the job is performed and salary information, including any pay scale. Employers would have to make that information available to any employee or applicant who requested it. Employers would also be prohibited from revising a job description of a current employee until the employee is provided an opportunity to review the revised description. (House Bill 5619).
• The Department of Civil Rights would have to maintain a telephone line and prominently display the number for anonymous reporting of violations and also maintain a public website with information about rights under the act and a link to an easy-to-use form for anonymous electronic reporting of violations (House Bill 5621). Similarly, employers with 50 or more employees would have to post information about state and federal equal pay laws along with the phone number for reporting violations, amongst other information (House Bill 5623).
• This package would also require that, in addition to other existing provisions, state construction contracts could only be awarded to employers who have obtained a “fair paycheck workplace certificate” administered by the Michigan Department of Labor and Economic Opportunity (House Bill 5622). The department would only issue this certificate if it determined that there was “less than a 5% difference between the average gross compensation the employer paid to employees with different protected attributes or characteristics” (House Bill 5625).
• House Bill 4405 revises the notice period for certain deductions related to garnishment to at least one pay period or 10 business days, whichever is greater.
• House Bill 4406 requires an employer to disclose wage information of similarly situated employees within 30 days to requesting employees, the employer may redact the names of similarly situated employees but shall provide information about their sex and seniority.
• The legislation has substantial penalties for violations of these provisions. Specifically, employers that do not comply with requirements under HB 5619, violations could be up to $25,000 depending on the number of occurrences (House Bill 5620). Penalties for violating the Elliot-Larsen Civil Rights Act provisions would be scaled based on total number of employees (House Bill 5626).

• The 12-bill legislative package has been referred to the House Labor Committee and a hearing has not yet been scheduled.

These bills are not final and are subject to revision as the legislative process occurs. Of course, Dykema’s Government Policy Advocacy team is closely monitoring the progress of these bills and has the ability to engage lawmakers about potential amendments or to discuss any questions you may have.