Michigan House Bill HB4972

Michigan 2023-2024 Regular Session

• Introduced: 9/13/23
• Refer: 9/13/23

Caption

Labor: fair employment practices; agreements that prohibit employees from disclosing certain information about violations of the Elliott-Larsen civil rights act; prohibit employers from entering into unless certain conditions are met. Amends 1976 PA 453 (MCL 37.2101 - 37.2804) by adding sec. 202b.

Impact

If enacted, HB 4972 will significantly impact how employment agreements are structured, particularly concerning non-disclosure clauses. The bill sets specific conditions under which an employer can use such clauses, including the requirement for written notification to employees about the implications of entering into such agreements. This change emphasizes the need for employers to educate their employees about their rights and the legal protections afforded to them. Furthermore, it may lead to greater accountability among businesses and could empower employees to disclose wrongdoings more confidently.

Summary

House Bill 4972 seeks to amend the Elliott-Larsen Civil Rights Act by adding a provision that restricts employers from entering into agreements with employees or former employees that would prevent them from disclosing violations of the act. The bill aims to enhance transparency and protect employees who speak out against potential violations concerning their civil rights. This amendment would ensure that employees can freely report any malpractices without fear of legal repercussions stemming from confidentiality agreements.

Contention

Notable points of contention surrounding the bill may arise from the perspective of employers who could argue that restricting non-disclosure agreements may expose them to increased liability and discourage open communications about workplace issues. Opponents may claim that such provisions could result in employees disclosing sensitive information that may be detrimental to the company's interests or its competitive edge. Balancing employee rights with employer needs will likely be a critical debate as the bill progresses through the legislative process.