Michigan Senate Bill SB0145

Michigan 2025-2026 Regular Session

• Introduced: 3/12/25
• Refer: 3/12/25

Caption

Labor: fair employment practices; certain information about a job applicant's compensation history and credit history; prohibit an employer from seeking or asking about. Amends sec. 13a of 1978 PA 390 (MCL 408.483a).

Impact

If enacted, SB0145 would create a more equitable work environment by eliminating practices that could potentially lead to wage discrimination based on an individual's previous earnings. By preventing employers from inquiring about past wages, the bill seeks to ensure that employees are compensated fairly based on their current qualifications and the responsibilities of their position rather than their historical earnings. This change could particularly benefit marginalized groups who may have been historically underpaid in the workforce, as it may help in leveling the playing field during salary negotiations.

Summary

Senate Bill 145 (SB0145) aims to amend the existing labor laws articulated in 1978 PA 390 to enhance fair employment practices and wage transparency. The proposed legislation explicitly prohibits employers from asking potential employees about their past wages, fringe benefits, credit scores, or credit history. Moreover, it aims to protect employees by mandating that employers cannot discourage or penalize employees from disclosing their wages. This represents a significant step towards ensuring fairness in hiring and employment retention processes.

Contention

The bill is likely to face various points of contention among stakeholders. Supporters argue that prohibiting inquiries about past wages would mitigate wage gaps and promote equal opportunity for all job seekers. However, critics may express concerns about the implications this legislation could have on the hiring process. Some may argue that employers need to understand a candidate's compensation history to make informed hiring decisions, and removing this consideration might complicate the recruitment landscape.