Michigan House Bill HB5624

Michigan 2023-2024 Regular Session

• Introduced: 3/20/24
• Refer: 3/20/24
• Report Pass: 12/12/24

Caption

Labor: discrimination; certain protected attributes and characteristics of an employee; prohibit an employer from basing the employee's wage rate on. Amends 1978 PA 390 (MCL 408.471 - 408.490) by adding sec. 13b & repeals sec. 13 of 2018 PA 337 (MCL 408.943).

Impact

The proposed changes in HB5624 would have significant implications for labor laws in Michigan. By explicitly defining that wage disparities based on protected attributes are not permissible, the bill aims to strengthen employee rights and promote a more equitable workforce. Furthermore, it clarifies that exceptions are allowable only in situations based on seniority, merit, or other non-discriminatory criteria. This could lead to a revision of wage policies among employers, ensuring compliance with the new law while possibly fostering a more inclusive work environment.

Summary

House Bill 5624 seeks to amend the existing law on wage payment and discrimination by prohibiting employers from paying employees different wage rates for equal work based on certain protected characteristics. Specifically, the bill introduces Section 13b to 1978 PA 390, aiming to ensure that workers performing the same job, which requires equal skill, effort, and responsibility, are compensated equally, regardless of attributes such as race, sex, or sexual orientation. This move is anticipated to enhance workplace equality in Michigan and tackle wage discrimination that exists in various sectors of employment.

Contention

However, the bill has also generated a conversation regarding its potential impact on employers and their operations. Critics may express concern over the administrative burden this legislation imposes on businesses as they may need to reevaluate pay structures and potentially face penalties for non-compliance. Proponents argue this law is essential in combating systemic wage disparities and helps to solidify Michigan's commitment to civil rights. Given the complexity of existing labor practices, there is an ongoing debate about ensuring the balance between fair pay and operational flexibility for businesses.