Advocacy News – April 23, 2024
The Michigan Chamber is seeking member feedback on a new legislative package, introduced by the “Progressive Women’s Caucus,” mandating equal pay for equal work.
Why it matters: It’s important to first acknowledge that the MI Chamber opposes pay discrimination and firmly supports equal employment opportunity and strong enforcement of the federal Equal Pay Act (EPA) and state and federal civil rights laws. However, the mandates found in the proposed legislation (HBs 4405-6, 5618-27) could entangle employers of all sizes and industries by:
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Limiting the discretion employers have to pay different employees different wages. While current law prohibits employers from discriminating against employees based on a protected attributes or characteristics, the legislation would essentially mandate “equal pay for equal work” – with limited exceptions.
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Prohibiting employers from asking potential candidates for information regarding the person’s past wages, fringe benefits, credit score, or credit history.
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Requiring employers to create and maintain job descriptions for each position and requiring employee review and confirmation when job descriptions change.
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Allowing employees to make anonymous complaints to the Department of Civil Rights.
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Requiring employers seeking state construction contracts to first obtain a “fair paycheck workplace certificate” from the state by providing there is “less than a 5% difference between the average gross compensation the employer paid to employees with different protected attributes or characteristics.”
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Adding substantial penalties for violations of various provisions contained in the bill package – including a avenues to file a private right of action (PRA), civil fines up to $25,000 and/or the awarding of treble damages.
Go deeper: Read our full analysis of House Bills 5618-27. Please provide any feedback you may have to Wendy Block at wblock@michamber.com.