WeVote
Log In

Bill

KB

Bill

HB 4295

Labor: fair employment practices; requirements to obtain a fair paycheck workplace certificate; provide for. Creates new act.

2025-2026 Regular Session Introduced by Kelly Breen and 35 co-sponsors

The bill creates a voluntary state certificate for employers with pay equity across protected groups, publicly listing certified employers and requiring data disclosure.

bill electronically reproduced 03/25/2025
#labor:fairemploymentpractices #labor:hoursandwages #stateagencies(existing):laborandeconomicopportunity
0
WeVote Research Nonpartisan
Bill Summary · HB 4295

Summary — HB 4295 (introduced March 25, 2025)

Short title: “Fair Paycheck Workplace Certificate Act”

Main purpose

Establishes a voluntary state-issued “fair paycheck workplace certificate” employers may obtain by demonstrating small pay differentials across employees with different protected attributes. The certificate is intended to recognize and publicly list employers whose average gross compensation does not differ by more than 5% across protected groups.

Key provisions

  • Definitions (Sec. 3)

    • “Compensation” = money paid for services (commissions, bonuses, tips). Excludes benefits (health, retirement), paid leave, separation/holiday pay, and other fringe benefits.
    • “Protected attribute or characteristic” = items protected under Michigan’s Elliott-Larsen Civil Rights Act (religion, race, color, national origin, age, sex, sexual orientation, gender identity/expression, height, weight, familial status, marital status, and other similar protected characteristics).
    • “Department” = Department of Labor and Economic Opportunity; “Director” = director of that department.

  • Application and issuance (Sec. 5)

    • Any employer (1+ employees) may apply by submitting a signed application, an application fee (set by rule), and required information:
    • Employer name/address and total number of employees.
    • If known, employees’ protected attributes/characteristics.
    • Payroll records showing gross compensation paid to each employee during the prior calendar year.
    • Any other information director requires by rule.
    • Director must issue a certificate within 15 days if (1) application is complete and (2) director determines the average gross compensation paid to employees across different protected groups differs by less than 5%.
    • If rejected, director must provide a written explanation.
    • Initial certificate expires after 6 months; subsequent certificates expire after 1 year. Renewals require reapplication and fee.

  • Privacy, transparency and database (Secs. 5 & 9)

    • Individual-level information submitted by employers is exempt from FOIA disclosure.
    • Director must maintain and publicly post (free) a database listing certified employers (name, address, and whether certificate is current or expired).

  • Enforcement and rules (Secs. 7 & 11)

    • Employers may not claim to possess a certificate unless they hold an unexpired certificate.
    • Civil fine up to $1,000 for violations; county prosecutor or Attorney General may pursue collection; fines deposited to the state general fund.
    • Determinations and appeals follow the Administrative Procedures Act. Director must promulgate rules including application process and an application fee “not more than necessary” to administer the act.

Who is affected

  • Employers operating in Michigan with one or more employees who seek the certificate (participation is voluntary).
  • State agency (Department of Labor & Economic Opportunity) — responsible for rulemaking, review, issuance, and maintaining the public database.
  • Potentially benefits employers that can demonstrate pay equity; imposes data-collection and administrative obligations on applicants.

Potential impacts and considerations

  • Administrative burden for employers (collecting employee-level payroll and demographic data, paying application fee).
  • Privacy protections for submitted individual data (FOIA exemption) but public listing of certified employers.
  • Encourages pay-equity transparency; penalty for false claims is limited (civil fine up to $1,000).
  • Rulemaking by the director will determine application fee level and technical implementation details.

Procedural status (as of 03/25/2025)

  • Introduced 03/25/2025 by Rep. Helena Scott; read first time and referred to the House Committee on Economic Competitiveness. The bill text requires departmental rulemaking and administrative procedures to be followed for implementation.

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

Sign in to ask a question.