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HB 5955

Labor: fair employment practices; labor service agencies; regulate. Creates new act.

2025-2026 Regular Session Introduced by Joey Andrews and 9 co-sponsors

Imposes a Michigan-wide regulatory framework for temp labor agencies to ensure wage/term disclosures, transparency, protections against retaliation, and enforced compliance.

bill electronically reproduced 05/12/2026
#labor:fairemploymentpractices #labor:workingconditions
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Bill Summary · HB 5955

Overview

HB 5955 proposes the “temporary laborer rights act” to regulate temporary labor service agencies, their clients, and temporary laborers in Michigan. The bill creates a framework for disclosures, recordkeeping, fees, transportation, safety-related costs, placement considerations, complaints, enforcement, and registration of agencies. It aims to protect temporary workers from retaliation and to ensure transparency in employment arrangements.

Main purpose and intent

  • Establish comprehensive protections for temporary laborers and clear duties for temp agencies and client employers.
  • Ensure visible, consistent disclosures about wages, work terms, transportation, meals, and job-site details.
  • Provide enforcement mechanisms, fines, and a state regulatory framework to promote fair employment practices in temporary labor markets.

Key provisions and changes

  • Definitions (Sec. 3): Specifies terms for client, department (D⬚LR), job site, temporary labor, temporary labor service agency, and temporary laborer.
  • Notice at Dispatch (Sec. 5):
    • Agencies must give temporary laborers a detailed notice when dispatched, including names of workers at the same site, work type, equipment, training requirements, wage rate, client/job site, transportation terms, and whether meals/equipment are provided (and costs).
    • If assignments span multiple days, notice terms must be updated if they change.
    • If a worker is not placed for a day, the agency must provide a confirmation of the worker’s job-seeking status upon request.
    • Prohibits sending workers to job sites with strikes or labor disputes.
    • Agencies should strive to provide information in languages commonly understood in the geographic area.
  • Recordkeeping (Sec. 7):
    • Agencies must maintain transaction records with detailed data on clients, job sites, hours, wages, work performed, deductions, contracts, notices, etc., including race and gender of workers.
    • Clients must submit weekly-transmittal information within 7 days after the last day of the workweek.
    • Records retained for 7 years; workers can inspect certain records within 5 business days of request.
    • Prohibits falsifying or deleting required records; certain defenses for non-remittance by clients.
  • Meal and Safety-related charges (Sec. 9, Sec. 13):
    • No charging for meals not consumed; if meals are consumed, charge only actual cost. Meals cannot be a condition of employment.
    • Safety equipment and required items cannot be charged beyond market value if not returned; other items charged at market value.
  • Pay and earnings transparency (Sec. 15):
    • Pay stubs must itemize client names, hours by client, hours per day, wage rates, total earnings, deductions (and purposes such as transportation), and additional required department information.
    • Daily work verification form required from clients; violations may incur civil fines ($500 first violation; up to $2,500 for subsequent violations; per worker and per day basis).
    • Annual earnings summary provided by Feb 1 each year; notice of availability with each wage payment.
    • Prohibits charging for consumer reports, background checks, or drug tests.
    • Deductions must not bring hourly wage below Michigan’s minimum wage under the applicable wage act.
    • If a worker is not directed by the client to work, the agency must pay at least 4 hours (or 2 hours if reassigned to another site during the same shift) at the agreed wage.
  • Placement and permanent hires (Sec. 17, Sec. 19):
    • Agencies must attempt to place workers in permanent positions with clients when the client plans to hire for a similar role.
    • Workers and clients may pursue permanent employment possibilities; agencies may charge a placement fee capped by a formula tied to previous commissions and days worked.
  • Workplace access and postings (Sec. 21, Sec. 23):
    • Agencies must provide adequate seating in public areas; required notices posted publicly.
    • Agencies must register with the department, provide unemployment insurance and disability coverage proof, notify clients/workers of registration status changes, and keep clients informed if registration is denied, suspended, or revoked.
    • Fees: annual registration up to $1,000; $250 per branch/location; potential nonpayment penalties.
  • Registration, enforcement, and penalties (Sec. 23, Sec. 25, Sec. 27, Sec. 29, Sec. 33, Sec. 35):
    • Registration prerequisites and ongoing compliance; prohibition on unregistered contracting; annual reporting and public disclosure (aggregated, de-identified, municipal/county level).
    • Department powers to inspect, investigate, issue orders, suspend/revoke registrations, and enforce via civil actions.
    • Private rights of action for workers to file complaints with the department or sue for injunctive relief or damages.
    • Prohibition on retaliation or discrimination for exercising rights under the act.
    • Department to adopt rules under the Administrative Procedures Act.

Who and what is affected

  • Temporary labor service agencies: Registration, recordkeeping, fee payments, disclosures, wage and deduction transparency, compliance, and potential penalties.
  • Clients (employers hiring temporary laborers): Responsible for providing certain information, sharing records, and compliance with placement and wage/deduction rules; potential liability for contract violations and fines.
  • Temporary laborers: Enhanced rights to wage transparency, meal costs, transportation, daily work verifications, annual earnings summaries, and protection from retaliation; potential remedies through department actions or civil suits.
  • Local and state regulatory bodies: Department of Licensing and Regulatory Affairs enacting rules, conducting investigations, and maintaining public, de-identified data.
  • The general public: Access to aggregated, de-identified data about temporary labor activity; broader consumer protections in temporary work arrangements.

Procedural and timeline aspects

  • Enforcement and penalties: Civil fines for noncompliance (ranging from $500 to $2,500 for repeated violations); separate violations for each worker and per day.
  • Registration process: Annual fees and branch-location fees; reporting requirements upon registration and renewal; immediate notification to clients/workers if registration is denied/suspended/revoked.
  • Record retention: 7-year retention period; accessibility for worker inspections within 5 days of request.
  • Compliance milestones: February 1 yearly deadline for earnings summaries; ongoing posting and notice requirements; periodic updates of notices if terms change.
  • Rulemaking: Department authority to promulgate rules to implement the act.

This summary captures the bill’s objectives to standardize the temporary labor market, promote transparency, protect workers’ rights, and establish a Michigan-wide regulatory regime with oversight, penalties, and avenues for enforcement and redress.

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

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