Michigan House Bill HB5626

Michigan 2023-2024 Regular Session

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

Caption

Crimes: other; provision regarding wage discrimination based on sex; modify, and increase fines. Amends sec. 556 of 1931 PA 328 (MCL 750.556).

Impact

If enacted, the bill would introduce a tiered system of fines for employers found guilty of violating these provisions. Employers with 1 to 15 employees could face fines up to $5,000; those with 16 to 50 employees might incur fines of up to $10,000; and larger employers with more than 50 employees could be subjected to fines of up to $20,000. This graduated system of penalties is intended to incentivize compliance among employers of all sizes.

Summary

House Bill 5626 aims to amend section 556 of the Michigan penal code concerning wage discrimination. The bill seeks to enhance protections against wage discrimination based on various characteristics, including sex, religion, race, and other attributes protected under the current Elliot-Larsen Civil Rights Act. It seeks to establish that employers who fail to pay equitably based on these characteristics could be charged with a misdemeanor, pending the number of employees they have, which determines the severity of their penalties.

Contention

Discussions surrounding HB5626 may highlight potential contention points regarding its enforcement and the implications for small businesses. While proponents argue that the bill strengthens workers' rights and promotes fair pay, opponents may raise concerns over how increased regulatory burdens and penalties could affect small businesses struggling to comply with multiple regulations. Furthermore, the specifics of how the enforcement will be carried out—especially in terms of what constitutes fair pay—is likely to be debated.

Bill_status

The bill has successfully passed in committee with a vote of 7 in favor and 2 against, indicating a supportive legislative climate, but further debates on the floor may illuminate various viewpoints on its potential implications for businesses in Michigan.