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SB 145

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).

2025-2026 Regular Session Introduced by Sarah Anthony

SB 145 bans Michigan employers from asking about applicants' past wages, fringe benefits, or credit history; protects employees who discuss wages, aiming to curb pay gaps.

referred to Committee on Economic Competitiveness
#labor:fairemploymentpractices
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Bill Summary · SB 145

SB 145 — Summary (Introduced Jan 23, 2025)

Subject: Labor — fair employment practices; prohibiting employers from seeking certain applicant compensation and credit information. (Amends MCL 408.483a — section 13a of 1978 PA 390)

Main purpose / intent

SB 145 would strengthen employee and applicant protections under Michigan’s Wage and Fringe Benefits Act by (1) prohibiting employers from requesting or seeking certain information about job applicants’ past compensation and credit history, and (2) protecting employees’ ability to discuss their wages. The proposal aims to prevent use of prior-pay and credit information in ways that can perpetuate pay disparities and workplace retaliation.

Key provisions

  • Adds prohibitions on employer practices in MCL 408.483a, including that an employer shall not:
    • Require employees to refrain from disclosing their wages (e.g., through nondisclosure policies).
    • Require employees to sign waivers or other documents purporting to deny their right to disclose wages.
    • Discharge, discipline, or otherwise discriminate against an employee for disclosing their wages or for wage discussions.
    • Ask job applicants for information about their past wages, fringe benefits, credit score, or credit history, or otherwise seek such information.
  • The bill is framed as an amendment to the existing Wage and Fringe Benefits Act (1978 PA 390).

Who would be affected

  • Employers operating in Michigan (all private-sector employers covered by the Wage and Fringe Benefits Act).
  • Current employees (gains explicit protections to talk about wages without retaliation).
  • Job applicants (employers would be barred from inquiring about prior pay, benefits, or credit history).
  • Human resources, recruiting and hiring contractors who would need to revise forms and screening practices.

Enforcement, penalties, and exceptions

  • The text provided does not add a new penalty schedule; enforcement would likely follow existing remedies and enforcement mechanisms under the Wage and Fringe Benefits Act unless later amendments specify otherwise.
  • The version provided contains no express carve-outs or exceptions (for positions where credit history is statutorily relevant), so those would depend on later amendments or legislative history.

Procedural status / timeline

  • Introduced: January 23, 2025.
  • Status: Referred to the Senate Committee on Labor.
  • Next steps would normally include committee consideration, possible amendments, committee vote, and then floor action; no further action is listed in the materials provided.

Potential impacts (likely)

  • Employers will need to update job applications, interview scripts, background-check policies, and written policies (e.g., confidentiality agreements regarding wages).
  • Could reduce reliance on prior-pay information when setting starting salaries, which proponents argue helps address wage inequality.
  • May constrain employers’ use of credit-history information in hiring decisions unless the bill is amended to create specific exceptions; could affect hiring practices in finance/security-sensitive roles unless alternative lawful bases are preserved.
  • Fiscal impact on state government not specified in the bill text provided.

If you want, I can draft a short checklist for employers on likely compliance steps if SB 145 becomes law, or prepare a comparison to similar laws in other states.

Compiled from official sources — confirm details with the bill’s official record.

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