Advocacy News – Feb. 25, 2026
A new Michigan House bill would govern how businesses can use artificial intelligence (AI) to monitor employees. While intended to improve transparency and accountability, it could also impose significant administrative and legal obligations on employers.
Why it matters: Businesses are increasingly looking to technology and AI tools to improve safety, productivity and competitiveness; however, HB 5579 would strictly limit how employers can use AI and monitoring tools by:
- Prohibiting the use of automated decisions tools (ADT) to make employment decisions – except in narrow, job-related purposes.
- In their press conference Feb. 23, proponents of the legislation – including the AFL-CIO, the Professional Employees Council of Sparrow Hospital, and the Communication Workers of America – cite examples of employee monitoring and surveillance practices they aim to prevent. These include body cameras to deter theft, docking pay if a computer mouse is idle for more than two minutes and tracking bathroom breaks.
- Requiring employee notice, consent and transparency when collecting employee data or using monitoring tools and allowing employees the ability to opt-out.
- Requiring comprehensive impact/risk assessments before implementing an ADT or other monitoring tool.
- Requiring employers to provide notice and information to unions and negotiate over monitoring if it affects wages or working conditions.
- Creating new civil fines, damages and mandatory audits that could expose companies to additional legal risk – even when AI tools are used responsibly.
Our thought bubble: While the rapid evolution of AI technology warrants thoughtful discussion, we believe employers need the flexibility to responsibly leverage innovative AI tools to enhance safety, productivity and competitiveness. Overly broad mandates could unintentionally stifle innovation or create unnecessary compliance burdens. As this issue moves through the legislature, the MI Chamber will urge lawmakers to base the discussion on verified facts and focus on clear, practical standards – not on assumptions or isolated anecdotes.
We want to hear from you: How would this proposal affect your workplace? Do you have concerns about compliance, innovation or operational impact? Share your feedback with Wendy Block so we can represent your voice if or when this legislation moves forward.